Provides expert analysis and practical guidance on the preparation of accounts for occupational trust based pension schemes under the revised 2018 Statement of Recommended Practice (SORP).
Beginning with the trial balance, the book explains what information is needed to prepare Financial Statements and how to go about compiling the Annual Report.
It provides practical guidance on the requirements of the SORP, providing examples and options on the approach to the requirements; ranging from the required disclosures, to additional disclosures that could be considered in relation to the investment risk and investment hierarchy disclosures. The book contains a disclosure checklist and example accounts to ensure all required disclosures have been considered, as well as guidance on what to consider when preparing a Defined Contribution Chair's Governance Statement.
The content was updated in March 2020 to reflect a number of important developments and includes the following:
- updated example accounts and disclosure checklist - Master trust supervision requirements and treatment of financial reserves - Latest disclosure regulations including environmental social and governance considerations - Clarity on disclosure of characteristics of insurance policies exceeding 5% of net assets
Read an extract of Practical Pension Scheme Accounting 2020
5 Chair's Annual DC Governance Statement 5.1 Summary of the requirements 5.2 Core financial transactions 5.3 The default arrangement and strategy 5.4 Trustee knowledge and understanding 5.5 Charges and transaction costs 5.6 Reporting options available to trustees
6 Auditors Report and Auditor's Statement about Contributions
7 Financial Statements - Fund Account - 7.1 Contributions 7.1.1 Employer normal contributions 7.1.2 Salary sacrifice arrangements 7.1.3 Employer deficit funding (DB schemes only) 7.1.4 Contributions to an Escrow account 7.1.5 Flexible arrangements 7.1.6 Employer augmentations 7.1.7 S75 debts 7.1.8 Other employer contributions 7.1.9 Employee normal contributions 7.1.10 Additional voluntary contributions (AVCs) 7.1.11 Auto enrolment 7.1.12 Summary of contributions 7.2 Transfers 7.3 Other income 7.4 Benefits 7.4.1 Pensions 7.4.2 Commutations of pensions and lump sum retirement benefits 7.4.3 Purchase of annuities 7.4.4 Lump sum death benefits 7.4.5 Flexible benefits 7.4.6 Taxation where lifetime or annual allowances exceeded 7.5 Payments to and on account of leavers - Refunds 7.6 Administrative expenses 7.7 Investment income 7.8 Taxation 7.9 Change in market value of investments 7.10 Foreign currencies 7.11 Investment management expenses 7.12 Transfers between sections
8 Financial Statements – Statement of Net Assets - still to be delivered 8.1 Investments 8.1.1 Fair value hierarchy 8.1.2 Reconciliation of investments 8.1.3 Investment transitions 8.1.4 Transaction costs 8.1.5 Property 8.1.6 Pooled investment vehicles 8.1.7 Derivatives 184.108.40.206 Futures 220.127.116.11 Options 18.104.22.168 Swaps 22.214.171.124 Longevity swaps 126.96.36.199 Forward foreign exchange 188.8.131.52 Repurchase and reverse repurchase agreements 8.1.8 Other investment balances 8.1.9 Additional Voluntary Contribution (AVC) investments 8.1.10 DC Investments 8.1.11 Investment risk disclosures 8.1.12 Equities 8.1.13 Bonds 8.1.14 Insurance policies 8.1.15 Special purpose vehicles 8.1.16 Qualifying investment fund 8.1.17 Common investment funds 8.1.18 Stock lending
8.2 Related party transactions 8.3 Contingent assets and liabilities 8.4 Contractual commitments 8.5 Subsequent events 8.6 Current assets and current liabilities 8.7 Subsidiaries, associates and joint ventures
1. Extract from The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (SI No 2734) 2. Extract from The Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996 (SI No 1975) 3. Extract from The Occupational Pension Schemes (Scheme Administration) Regulations 1996 (SI No 1715) 4. Extract from the Occupational Pension Schemes (Investment) Regulations 2005 SI 2005/3378 5. Example prior year adjustment disclosures 6. Going concern assessment – example documentation 7. Annual report disclosure requirements in the Republic of Ireland 8. Example Chair's DC Governance Statement 9. Example annual report (minimum requirements) 10. Accounts disclosure checklist