MPs agree regulations for money purchase schemes

MPs have approved rules governing annual Statutory Money Purchase Illustrations (SMPI), which require life offices and advisers to explain in real terms what an individual should receive at retirement. Unveiled this month by pensions minister Ian McCartney, the regulations set out in simple language what a pension pot is likely to be worth at retirement, how it has been calculated and what it is worth at that moment. The changes, to be introduced in April 2003, require projections to be calculated using a single growth rate, rather than the upper/middle/lower range used by the FSA. M...