UK - The Accounting Standards Board has rejected a bid by the Society of Pension Consultants to change the way death benefits are calculated under FRS17.
The SPC wanted the liabilities of pension funds whose benefits were “self-insured” to be calculated in the same way as pension funds whose liabilities were insured by a life company.
It argued that the intention of FRS17 itself is that accounting for accrued liabilities should not depend on whether or how benefits are insured.
It pointed out too that under the present ASB stipulation, companies’ balance sheet figures could fluctuate simply by the trustees altering their insurance arrangements.
The ASB though has turned down the SPC’s request, a move that will mean that schemes whose benefits are “self-insured” will now have to maintain a reserve of around 5% of their value to insure benefits.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers