UK - The UK’s Pensions Regulator has issued a wide-ranging discussion document reviewing the form and content of pension scheme report and accounts.
“This sets out the findings of a working group chaired by the regulator, which included wide representation from industry experts,” the regulator said.
Among the proposals are the inclusion of a governance statement in the annual report and accounts and the removal of miscellaneous compliance disclosures.
For defined benefit funds, the idea is for a statement on the employer covenant and the funding position to be included.
“Where the scheme provides defined benefits, the proposal made here is that the report should include an informative statement on the funding position of the scheme.” And any recovery plan should also be included.
For defined contribution schemes, the proposal calls for “enhanced investment disclosure”.
“A one, three and five year performance history might provide the balanced overview required.” The consultation runs until August 25.
Any feedback will inform the work of the Pensions Research Accountants Group. PRAG plans to issue an Exposure Draft later in 2006 which will lead to a revised Statement of Recommended Practice (SORP).