October 2013 marks the first anniversary of the formal introduction of the new employer duties. In this note, we review developments since the largest companies have had to comply with the new duties, and look forward to what we can expect in the future.
What is the current position?
Actuarial valuations are undertaken based on market prices and yields on the date of the valuation. Assets are taken at market value and liabilities are priced using discount rates set with reference to gilts or other similar markets on the valuation date. Gilt yields have fallen significantly over recent years due in part to quantitative easing and this has led to widening deficits.