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“Many pension schemes undertaking actuarial valuations at the June or September quarter ends are likely to show stressed positions – with higher deficits despite reasonable asset growth,”

This sums up the problem quite nicely. The correlation between pension funds' ability to pay pensions and current interest rate is low or may even be slightly negative, yet interest rates dominate solvency calculations. What is needed is not so much leniency, but far better and more realistic solvency calculation models. Current models work against financial policy and are pro-cyclical. Why should financial authorities take them seriously?

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