This working party will build on the work undertaken by the previous dynamic discount rate working party, including:

1. Addressing/investigating the limitations that were acknowledged by the previous working party. This includes consideration of using a stochastic modelling approach and the complexities caused by pension increases that are subject to caps and collars.
2. Further consideration of practical issues and challenges in implementing this approach that may limit the effectiveness of using a dynamic discount rate approach.
3. Investigation of the benefits/drawbacks of using a dynamic discount rate approach in run-on scenarios, having regard for the potential implications of the 2023 Mansion House proposals.

Chair: TBC

Established: 2025