Pensions Accounting - ASB April 2009 edition of Inside Track

The April 2009 edition of the Accounting Standards Board (ASB) quarterly update, Inside Track, contains an update on the ASB pensions accounting project.

The update reports that the ASB is still in the process of considering the responses to its January 2008 discussion paper “The Financial Reporting of Pensions” but has reached several tentative conclusions such as:

• the pension liability should not include estimates of future salary increases;
• the unit of account should be based on the liability due to the individual employee;
• pension assets and liabilities should be recognised immediately;
• the actual return in the value of fund assets should be presented as part of finance income. The ASB will consider alternative presentation options;
• and that the cash flows to be used in measurement of the pension liability should be explicit; based on observable market prices adjusted for entity specific circumstances; unbiased whilst incorporating all available information on present earned benefits; and correspond to conditions at the end of the reporting period.

The ASB aims to produce a final document this summer. To access this or earlier editions of Inside Track, please click on the link below – www.frc.org.uk/asb/publications/insidetrack.cfm

(Posted 29 April 2009)

CIPFA Pensions Conference: Latest developments in Accounting, Auditing and Governance in Public Sector Pensions

11 May 2009 - London

Volunteer Feedback Survey
We are always eager to hear existing (and potential) panel members' views on how we can help support you better. The Volunteer Survey offers a formal mechanism for you to feed back your views to CIPFA.

(Posted 3 March 2009)

CIPFA Pensions Panel Meeting 11 February 2009
The CIPFA Pensions Panel met on 11 February 2009. Please click here to download a note of the proceedings.

(Posted 25 February 2009)

CIPFA proposes changes to the LGPS investment regulations
A CIPFA Pensions Panel report published today, based on the findings of a 2008 survey of Local Government Pensions Scheme (LGPS) managers, recommends that changes are needed to simplify and modernise the LGPS investment regulations.

The report, which has been submitted to CLG for their consideration, sets out a number of detailed recommendations aimed at clarifying the rules on permitted investments and borrowing, and the use of overseas investment managers. Copies of the report can be downloaded below.

CIPFA plans to work with both the Department for Communities and Local Government (CLG) and LGPS practitioners to use the suggested changes to improve investment management within a stronger, modern investment framework.

CIPFA Pensions Panel Investment Regulations Report (2 MB)

(Posted 28 January 2009)

FRC publishes Actuarial Quality Framework
The Financial Reporting Council (the FRC) has published its Actuarial Quality Framework. The Framework has been prepared following consultation on the FRC’s discussion paper, ‘Promoting Actuarial Quality’, issued in May 2008, and the Professional Oversight Board’s accompanying paper, ‘Monitoring and scrutiny of actuarial work’.

The discussion paper suggested that actuarial work was characterised by the development, use and interpretation of models in a range of financial work. It proposed six factors, or drivers, which promote actuarial quality, and these form the basis of the Framework as follows:

CIPFA Pensions Panel Meeting 28 November 2008
The CIPFA Pensions Panel met on 28 November 2008. Please click here to download a note of the proceedings.

(Posted 15 December 2008)

CIPFA Pensions Panel Meeting 9 September 2008
The CIPFA Pensions Panel met on 9 September 2008. Please click here to download a note of the proceedings.

(Posted 30 October 2008)

HM Treasury publishes revised Myners Principles
On 15 October 2008, HM Treasury published the final version of the revised Myners principles following the consultation exercise on the proposed changes which took place earlier this year:

www.hm-treasury.gov.uk/updating_myners_principles_a_consultation.htm

The response to the consultation process notes that “there was broad support for the proposition that Local Government Pension Scheme (LGPS) would benefit from continuing to apply updated Myners principles, with appropriate adjustment to reflect the specific requirements of the LGPS, and that LGPS stakeholders should be involved in the IGG process.”

Reflecting this last point the membership of the Investment Governance Group (IGG) will include Nicola Mark (Norfolk County Council Pension Fund).

It is anticipated that a LGPS sub-group of the IIG will be created, and will involve CLG and CIPFA. This group will update the 2002 CIPFA guidance, “Principles for Investment Decision Making in the LGPS in the UK”, to adapt the new principles, best practice and tools for LGPS usage.

(Posted 23 October 2008)

CIPFA to propose changes to the LGPS investment regulations
A CIPFA report based on the findings of a survey of Local Government Pensions Scheme (LGPS) managers will recommend that changes are needed to simplify and modernise the LGPS investment regulations.

In their report to the CIPFA Pensions Panel (who commissioned the work), a group of senior LGPS managers, under the chairmanship of Peter Scales OBE, is considering a number of detailed recommendations aimed at clarifying the rules on permitted investments and borrowing, and the use of overseas investment managers.

Speaking recently at the IRR Local Government Pension Investment Forum, Peter outlined the emerging findings and reported that the working party is currently finalising it's report and recommendations in light of current financial and economic conditions, with a view to submitting its final report later this year.

CIPFA plans to work with both the Department for Communities and Local Government (CLG) and LGPS administrators to use the suggested changes to improve investment management within a stronger, modern investment framework.

Commenting on progress with project, the Chair of the CIPFA Pensions Panel, Bob Summers, said:

"When we began this exercise, we were in a very different world. I have therefore asked the working party to look at the recommendations afresh in the light of current market conditions and the much-changed risk environment, to ensure the changes we are proposing are the right ones for the LGPS both now and for the future."

In due course, we would hope to see CLG take on board our recommendations in full."

(Posted 22 October 2008)

More news from the CIPFA Pensions Panel
For more news from the Panel please refer to the News Archive.