KPMG’s Pensions Accounting Survey 2019 key headlines are:
- Median real discount rates are still negative, with discount rates at 2.9% and assumed RPI inflation at 3.3%.
- Median life expectancy assumptions have reduced for the fourth consecutive year. With the publication of CMI (Continuous Mortality Investigation) 2018 in March 2019, we can now anticipate a 'lost decade' of life expectancy improvements between 2009 and 2019.
- The landmark judgment on Guaranteed Minimum Pension (GMP) equalisation impacted many companies in 2018. Around 70% of companies have reported an impact of 1% of total liabilities, or less.
- Following the House of Lords’ inquiry into RPI inflation, it is expected that RPI inflation could fall by up to 0.3%.
Click here to download the full report: KPMG Pensions Accounting Survey 2019.