UK - An international think-tank has criticised FRS17 and warns that full implementation will aggravate the funding gap.
The Organisation for Economic Cooperation and Development claims the accounting standard has a disproportionately adverse impact in the UK because schemes have high equity asset allocations.
It said that while the reporting standard might introduce greater transparency to firms’ balance sheets, it would increase volatility, by giving more prominence to long-term pension liabilities.
The OECD added: “While a recovery in capital markets would lessen shortfalls, there is some risk the funding situation will grow worse, even if there is no further decline in markets.”
It said this was because pension fund assets were marked to market value (equities) while liabilities for buyout were based on double-A corporate bond yields.
Low interest rates on high quality assets would aggravate the funding gap.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.