Summary
The FSA wants to give further information on how it expects firms to evaluate their pension obligation risk and how it assesses this in firms’ ICAAP submissions. This information is additional to the guidance on Pillar 2 pension obligation risk calculations it recently updated and included in GENPRU 1.2 (“P2PRC”). The general feeling was support for the FSA's attempts to provide more clarification on the approach to P2PRC. There was some support for use of the accounting valuation to determine societies' own internal assessment of P2PRC though.
Our response to guidance consultation on pension risk obligation
Members and associates only may find more information in Circular 7132:
Circular 7132 - Pension obligation risk and ICAAP