Commenting on the ‘Managing investment and liquidity risk in the current economic climate’ statement from The Pensions Regulator, Kerry Lindsay, Head of Scheme Actuary Services, says:

“We welcome the statement from The Pensions Regulator (TPR) this morning, ahead of the expected conclusion of the Bank of England’s emergency bond buying scheme on Friday. Industry focus has understandably been on collateral calls for LDI funds, but rising interest rates also impact the value of member options like transfer values. Trustees need to ensure they are reviewing the terms of these options regularly to ensure they remain fit for purpose and we were pleased to see this highlighted by TPR in their statement this morning. We would encourage Trustees to work with their advisors to review their options terms as soon as possible in light of recent market movements, and consider how these terms may need to evolve going forward given the current fast changing economic environment.”