The Pensions Regulator

Responses to trustee report and accounts discussion paper published

Ref: PN06-39
30 November 2006

Responses to the Pensions Regulator’s ‘Review of the form and content of pension scheme report and accounts’ discussion paper were published today (Thursday).

The main opinions voiced by respondents were that:

• A distinction should be made between membership disclosure requirements and the stewardship role of pension scheme reports and accounts.
• Sharing of relevant information is best channelled through other means of communication, for example the summary funding statement or Statutory Money Purchase Illustration, and not the annual report and accounts.
• Actuarial liabilities should not be included in the scheme accounts.
• Governance statement should be disclosed – this was considered to be relevant to the accountability of trustees.
• The proposed changes might result in some additional costs, though for a number of schemes this would be marginal. The benefits of enhanced, meaningful information would outweigh this.

To view the full responses visit: www.thepensionsregulator.gov.uk

The Pensions Regulator published the discussion paper on 2 June 2006 to discuss the effectiveness of current pension disclosure requirements.

Feedback received will inform forthcoming project work being undertaken by the Department for Work and Pensions (DWP), the Pensions Research Accountants Group (PRAG) and the Accounting Standards Board (ASB).

Editor's notes

1. There were 49 responses to the discussion paper. Input was obtained from a range of sources including trustees, accountants, administrators and consultants.
2. Responses received from the discussion paper will inform the work of the PRAG for its review of the pension Statements of Recommended Practice (SORPs). PRAG plans to issue an Exposure Draft in late 2006 which will lead to a revision of the pension SORP. For further information visit www.prag.org.uk.
   
   Responses will also feed into the ASB’s research project into accounting for pensions. The ASB announced its research project into the financial reporting of pensions on 14 October 2005. For more information visit www.frc.org.uk/asb.
   
   They will also contribute to the DWP’s review of disclosure.
   
3. The Pensions Regulator is the regulator of work-based pensions in the UK, with wide-ranging and flexible powers under the Pensions Act 2004.
4. The Pensions Regulator’s powers include the ability to:
   • collect detailed scheme information;
   • issue improvement notices and third party notices, enabling the regulator to ensure problems are put right;
   • freeze a scheme that is at risk while the regulator investigates;
   • prohibit trustees who are judged not fit and proper to carry out their duties; and
   • issue a contribution notice or financial support direction.
5. The Pensions Act 2004 also imposes a statutory obligation on 'whistleblowers' to report suspected breaches of the legislation to the regulator.