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  • Martin Hooper

    Martin Hooper

    Principal and Senior Consultant - Corporate Actuary

  • This note is for those who will be involved in preparing and auditing pension disclosure under Accounting Standards FRS102 (UK non-listed), IAS19 (EU listed) and ASC715 (US listed) as at 30 June 2021.  


    We look at the current topical issues as well as the considerations for company directors when setting assumptions, and for auditors in determining whether the assumptions are appropriate. 

    What topics are covered?

    • Improvements in IAS19 positions
      Most pension schemes have seen a significant improvement in their IAS19 funding level since 31 December 2020.s.
    • Impact of Covid-19 on pension scheme demographics
      The CMI estimates there have been 100,000 more deaths in the UK than would have been expected since the start of the pandemic. But this has only led to a modest reduction in scheme liabilities.
    • Changes from RPI to CPIH in 2030
      It is widely expected the change to the RPI inflation statistic will take place in 2030, meaning that inflation assumptions will need to be reviewed. 
    • GMP equalisation
      Recent judgements will require companies to estimate the impact on each individual scheme's liabilities, and potentially recognise a further P&L charge.

    Further topics featured include the below. 

    • Amendments to the IAS 19 accounting disclosure requirements
    • The discount rate
    • RPI and CPI inflation assumptions
    • Mortality assumptions

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