FSA confirms pension KFI changes

The requirements set out the mortality assumption for firms to use when illustrating a future annuity within a KFI. Earlier this year, the regulator proposed changing the assumption by updating it for improved longevity and aligning it with the basis used by the Financial Reporting Council (FRC), so that the mortality basis for KFIs is consistent with that for annual pension statements. It also proposed calculating annuities on a gender equal mortality rate, in line with a European Court of Justice's decision in March last year which ruled that insurance premiums can not be based on s...