SERIES 200 - RETIREMENT FUNDS

Early in 2004, a draft PGN205 entitled "COMMUNICATION TO MEMBERS OF DEFINED CONTRIBUTION RETIREMENT FUNDS" was distributed to members for comment. Following strong objections from a few members, the PGN was sent back to the Retirement Matters Committee for review.

It has been agreed not to proceed with PGN205, but members need to be aware that they are subject to UK guidance note GN34, a copy of which is linked to this paragraph.

Note that there is not much in this GN that does not apply to SA (except paragraph 1.3 which becomes redundant).

This effectively means that:

• The GN does apply to SA.
• It even applies where, for example, illustrations are provided for purposes of an article in the press (see paragraph 1.2)
• The standards for any illustrations in DC funds are set quite high.
• In the light of previous objections that the draft PGN205 may expose members to litigation risks, it should be noted that:
• The GN is classified as “recommended practice”.
• The GN is peppered with guidance as to what the actuary “should” do (e.g. the whole of Section 3 “Calculations”, Section 4 “Disclosure”nd Section 5 “Comparison of Defined Benefit and Defined Contribution Benefits”).

Other Guidance Documents