Tailoring CMI 2020 for your scheme and using scenario analysis to understand longevity risk

Tailoring CMI 2020 for your scheme and using scenario analysis to understand longevity risk

27 May 2021

In light of future uncertainty, this year’s Pensions Regulator’s Statement is guiding schemes to consider using scenario analysis on investments, covenant and mortality.

In addition, the new CMI 2020 projection model introduces a new parameter which gives more flexibility in how you set your longevity assumptions and decide how much weight to put on the COVID-19 experience of 2020.

XPS COVID-19 Analytics can illustrate scheme specific mortality scenarios and provide evidence to justify your choice of the new 2020 weighting.

This short video explains our approach and how it can help you reflect the Regulator’s Statement and set the new CMI 2020 parameter based on the specifics of your scheme.