(2) what evidence the Inland Revenue's Savings and Investment Division collected to support its view expressed to him on 21 May 1997 that actuarial valuation assumptions tended to very cautious.
The policy note of 21 May 1997 describes actuarial valuation assumptions as tending to be “very cautious”, on the basis of advice from the Government Actuary's Department (GAD) that the dividend growth model used by actuaries implicitly assumes
“a conservative real rate of return on equity. [This] tends to mean that actuarial value is somewhat less than the market value...”
GAD's rationale is explained on pages 34 and 35 of the 27 June document released on 30 March.