Policy Statement - PS 13/2 some further thoughts
17th May 2013
In March 2013, the FSA published their final rules regarding inflation adjusted illustrations under policy statement PS13/2. Full details of this policy statement can be found here:
The policy statement details the new rules on how pre-retirement illustrations are to be calculated with effect from 6th April 2014. In essence these new rules will impact the calculations so that all illustrations will be produced in real terms which align the illustrations to the SMPI’s. Also captured in this policy statement is the change to the growth rates in that instead of the current 2% differentiation between growth rates there now will be a 3% differentiation. There are also requirements around the drawdown illustrations so that the value of the fund is projected at 5 yearly intervals with a maximum age of 99 or older unless the fund at the higher rate is projected to be exhausted at an earlier point.