UK - The introduction of FRS17 means large pension benefit improvements are unlikely to ever happen again, Lane Clark & Peacock claims.
It says that under the accounting rules any benefit improvements will have to be charged to a company’s profit and loss account in a single accounting year.
This means large benefit improvements will lead to large costs appearing in company accounts.
The old pensions accounting rule – SSAP24 – allowed companies to spread these costs over a period of around 15 years.
LC&P partner Francis Fernandes said: “FRS17 means we probably won’t see any large benefit improvements again.”
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