Question to the Department for Work and Pensions:

To ask Her Majesty’s Government whether they plan to introduce a smoothed discount rate for the purpose of pension fund valuation.

Government consulted in 2013 on whether legislation should be introduced to allow the ‘smoothing’ of asset values and liabilities in funding valuations.

Responses to the call for evidence indicated that there was no strong case for legislating to permit smoothing, with the overwhelming majority of respondents against this option. Respondents instead favoured greater use of the flexibilities within the existing legislation governing scheme funding.

In its response to the call for evidence the Government advised that, given the views received, it did not intend to pursue the option of legislating to permit asset and liability smoothing, and that remains the Government’s position.