The UK’s public sector pension schemes are being encouraged by advisers to soften their mark-to-market accounting rules in order to reduce the effect of volatile net asset values on final salary retirement plans.

But some consultants have warned the approach risks "turning the clock back" to the days when actuaries "smoothed out" pensions numbers to make them appear less volatile. One said: "I am a bit concerned they are erring toward the funding approach of 20 years ago."