The PIA has recently announced the results of its independent
review of the economic and technical basis for the rates used in
projections. The report, which was over one year in the making, has
Current projection rates are reasonable but,
because of an expected slowdown in the rate of economic growth
world-wide, an across-the-board reduction in projection rates of 1%
is justifiable for the future.
There should be an increase in the real rates used
in comparison with SERPS.
There should remain one standard rate of return,
rather than differentiating the return rates according to the
products on offer.
The PIA has yet to announce whether, and how, it
will embrace these recommendations, but has said that if it feels
that rule amendments are necessary, then these will be issued in
the normal way.