The first bullet point on page 6 of this chapter states: "Where no explicit allowance is made for future bonuses, a rate of interest should be used which is lower than the rate chosen according to the last but one principle, by an appropriate amount." What is the last but one principle? Thanks!
The notes are referring to the principle starting "The rate of interest used in the calculation of the reserves should be chosen prudently..." i.e. choose a rate according to the principle I have written up there ^ and then lower it again if bonuses are not explicitly allowed for.
