UK Pensions - Accounting Standards Board's pension reform proposals: "Horrendous"

Proposals by the UK's Accounting Standards Board (ASB) to bring the annual volatility of pension scheme assets directly onto the balance sheet and to use a risk-free, rather than corporate, bond rate to discount occupational pension liabilities have been savaged by a leading figure in the UK pensions sector.

The ASB discussion paper proposed an end to the smoothing mechanism which currently allows the expected rate of return to iron out short-term volatility and instead report the actual returns