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24th Feb 2014
The Financial Reporting Council (FRC) have now published their final version of revisions to be made under AS TM1 with effect from April 2014, following the consultation document issued in November 2013. PN 010/14 was issued on 20th February. The notice can be found here
The changes are basically as expected and in line with the changes CTC has been making to our Illustration software to meet the new FCA requirements for implementation In April. We are pleased that, following representations from CTC amongst others, they have accepted the benefits of maintaining a consistent approach between the SMPI rules and those set by the FCA for illustrations generally.
The major change introduced allows providers to present SMPI statements that include the effect of taking a tax free cash sum at retirement and also to reflect pensions being purchased on a non-increasing basis, or at a rate which is not index linked. These changes are optional and, in view of the closeness to the April deadline, CTC does not intend to change our standard format (just showing the full pension which can be purchased increasing in line with inflation). We would be happy to discuss with users making such changes in a future release.