FTSE 100 company pension schemes have increased their longevity assumptions for their pensioners for the fifth consecutive year, according to new survey data from Mercer. The increase is estimated to add approximately 1% to scheme liabilities.
The report showed that FTSE 100 companies had...
Despite recent market volatility almost doubling UK FTSE 100 pension deficits to £70bn, the outlook for FTSE 100 companies on pensions is broadly positive, according to KPMG’s 2011 Pensions Repayment Monitor.
The KPMG research found that, as of the end of their last financial year,...
The shift to the Consumer Prices Index (CPI) as the pension indexation measure has created a windfall for some companies that have seen liabilities reduce dramatically. BT has seen a huge £3.5bn decrease in liabilities in their 2011 accounts due to this change, according to the 18th annual...
The auditor should be a critical friend to trustees, offering practical advice and understanding argues Giles Mullins, Grant Thornton
All too often the audit is seen as a compliance exercise and, in large part, this is due to the way in which the profession has responded to the regulatory and legal framework in which it operates. However, stakeholders are increasingly taking an interest in what we do.
While it is unfortunate...
As many as 10% of the FTSE 100 may benefit from changes by the International Accounting Standards Board (IASB) to the IAS 19 standard according to research from PensionsFirst.
It has been widely reported that the key changes – which include removing the current expected return on scheme...
Changes in rules for accounting for company pension costs (IAS 19) published on 16 June 2011 may prompt companies to review their pension plan asset allocation and investors to review the effect of pensions risk on companies.
The latest rules on pensions accounting which come into force in 2013...
The international accounting standards board has published a “near final” draft of its revised pension accounting standard IAS19.
As expected, the revised standard is to remove two key features of existing pensions accounting standard, the “expected return on assets” and...
UK pension schemes have fared relatively well over the past year according to the KPMG Pensions Accounting Survey 2011.
Most UK companies saw pension balance sheets improve over 2010, with strong asset returns more than offsetting slightly tighter real discount rates. Industry...
Some 12% of UK pension schemes have suffered from incidents of fraud in the past 24 months, with large schemes (more than 10,000 members) being worst hit, according to research conducted by accountancy firm Baker Tilly. Schemes with fewer than 1,000 members reported no evidence of fraudulent...
A summary by Aon Consulting (tel: 0800 279 5588) of key developments affecting occupational pensions.
Accounting for defined benefit pension schemes – recent developments
Pension scheme surpluses and deficits must be allowed for in company balance sheets. Under existing regulations, most UK companies account for their pension scheme in line with the UK Accounting Standard FRS17 or the International Accounting Standard IAS19.
The current position
Under...
Trustees need the flexibility to respond to the conditions they find themselves in advises Anthony Hilton, Evening Standard
Accounting is one of the most contentious parts of the pension’s landscape.
The current accounting rule FRS 17 dating from 2000 and its international accounting equivalent have highlighted the size of current deficits on the face of company accounts and have brought home to financial...
Most companies would have to report higher pensions costs under proposed changes to accounting rule IAS 19 expected from the International Accounting Standards Board (IASB).
PricewaterhouseCoopers (PwC) estimates that combined pension costs for UK companies will rise by £10bn, with a...
