Why is the Government insisting that remedy costs are spread over four years, when remedy will be paid over decades?

The Government believes it is right to capture the full impact of remedy at the 2016 valuations, given the remedy period will end by the end of the implementation period for this set of valuations.This means that remedy will not need to be allowed for at future valuations.

Capturing remedy over four years also more aligns those who benefit from remedy with those who pay for it. The Government Actuary advised that a four-year spreading period is a reasonable way of achieving intergenerational fairness.