Corporate Bulletin: Quarter 4 2012

Topic:
Actuarial consulting
Date published:
09/01/2013

In Brief:  

  • Lower net discount rates at the year end mean that pension scheme liabilities could increase by up to 8% compared with the previous year end.
  • Schemes invested in equities and corporate bonds may expect to see accounting deficits broadly unchanged compared to the previous year whereas schemes invested in gilts and index-linked gilts may expect to see increased deficits at the year end.
  • The ONS is due to announce its proposals for possible changes to RPI on 10 January 2013. Until the proposals have been digested, there will remain uncertainty over setting the RPI and CPI inflation assumptions.