Abolition of ACT has cost pensions over £100bn

A report written for the Actuarial Profession’s pensions board in August 2005 by Terry Arthur, a fellow of the Institute of Actuaries, reveals in present value terms the cost to pension schemes could be even higher at £150bn. Although the report was never formally adopted by the Profession’s pensions board, Arthur says despite being a year old “the estimated losses in the note would be the same apart from the addition of interest accumulated in the meantime”. The nine-page note suggests instead of the most quoted figure of £5bn, the cost should be looked at in present value terms as thi...