On October 29, 2024, the PPF published a response to its March 2024 consultation, confirming that it would proceed with its proposal to give actuaries the option of using a bespoke discount rate assumption in s. 143 valuations of smaller pension schemes.
This addresses the PPF's concern that its standard assumptions could lead to marginally overfunded smaller schemes being unable to obtain affordable buyout quotations for PPF levels of compensation.
The bespoke discount rate easement is due to apply to schemes with liabilities of £50 million or less. The changes will apply to valuations under ss. 143, 152 and 158 Pensions Act 2004 with effective dates on or after May 31, 2024. No changes are being made in relation to s. 179 valuations.
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