German companies and retirement providers will be able to lower calculations for future longevity buffers after mortality tables were corrected, according to an update from the consultancy behind the figures.
Last month German actuarial consultancy Heubeck admitted to “inconsistencies” in the calculations of the new tables it issued over the summer.
The tables have since been revised and adjustments made to the underlying data.
“The trend in longevity improvement is now less pronounced,” said Heubeck in a statement.
Overall, the adjustments companies have to make to their longevity buffers were “minimal”, the consultancy added.
Initially an increase to buffers of between 0.8% and 1.5% had been predicted for companies applying the German accounting standard HGB.
This increase has now been lowered to between 0.5% and 1%.
For companies applying their own tables adjusted to their workforce “the increase might be lower or there might even be no increase at all”, explained the consultancy.
The one-time effect of the new tables is more pronounced for companies using international accounting standards.
It will be between 1% or 2%, which is lower than the 1.5% to 2.5% corridor originally predicted.
The new tables will already have to be applied for 2018 annual reports after they have been approved by the finance ministry and auditors.
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