Pensions longevity proposals delayed

LONDON (Reuters) - The Pensions Regulator has delayed proposals to make pension schemes use more conservative mortality assumptions, after the move came under fire from industry groups which said it created unnecessary pressure.

The regulator had said it wanted companies to assume the average 65-year-old retiring today will live until the age of 90 -- around five years longer than most schemes currently assume.

The proposals, known as the long cohort, would add tens of billions of pounds to pension schemes' liability.

The regulator said on Monday the changes would not apply until the beginning of the next valuation cycle for defined benefit schemes, which starts in September 2008. The previous start date for the proposals had been March 2007.

Pension schemes have 15 months from the scheme valuation date to undertake a valuation, submitting a recovery plan to the regulator if they are in deficit. The delay means the first plans under the new rules will be due more than a year later, in December 2009.