An opportunity to shape the next edition of the Pensions SORP
The Pensions Research Accountants Group (PRAG) SORP Working Party has issued a call for stakeholder input to inform the next edition of the Pensions SORP.
Updating the Pensions SORP
Work will begin shortly on the next edition of Financial reports of pensions schemes: A statement of recommend practice (the Pensions SORP).
The Pensions SORP, which was last updated in 2018, will be updated to reflect the next edition of Financial Reporting Standard (FRS) 102. Publication of the revised FRS 102 by the Financial Reporting Council (FRC) is expected before the end of 2023.
The FRC’s periodic review of UK GAAP
FRS 102 is being revised following the FRC’s periodic review of UK GAAP. The public consultation phase of the periodic review concluded on 28 April, and the FRC is currently considering responses to the consultation. The proposed effective date of the next edition of FRS 102 is reporting periods commencing on or after 1 January 2025. The implementation date is also subject to consultation.
The Pensions SORP is required to follow FRS 102, so the PRAG SORP Working Party will be considering the implications of any final changes to FRS 102 for the Pension SORP in due course.
The effective date of the next edition of the Pensions SORP will align with the effective date of the next edition of FRS 102.
Call for stakeholder input on the Pensions SORP review
The PRAG SORP Working Party intends to undertake a review of the Pension SORP to establish if:
- Further guidance may be needed in any area.
- Current guidance should or could be amended or updated.
- Any guidance should or could be deleted altogether.
In advance of this review, the SORP Working Party are reaching out to stakeholder groups such as trustees, pension scheme members, sponsoring employers, financial statement preparers (including third party administrators and in-house preparers), auditors, actuaries, lawyers, investment advisers, industry and accounting bodies, and regulators.
To assist the SORP Working Party in its review, stakeholders are asked to consider the following questions:
- What further guidance would you wish to see in a revised Pensions SORP?
- How could current guidance in the Pensions SORP be amended and/or updated?
- What guidance, if any, should/could be deleted from a revised Pensions SORP?
- What changes, if any, should/could be made to the format and presentation of the annual report and financial statements for pension schemes?
- Other comments?
The Working Party would welcome detailed responses to these questions. The responses will not be made public, and a response will not preclude any stakeholder from responding to the draft Pensions SORP when published for consultation.
How to respond
Responses are requested by 5pm on Friday 23 June 2023.
ICAS members who wish to respond should please email Christine Scott, Head of Charities and Reporting, at connect@icas.com for further information on how to relay comments to the Working Party.
About SORP-making
PRAG is the accredited SORP-making body for the Pensions SORP and delegates work on updating the SORP to the PRAG SORP Working Party.
SORP-making bodies are required to comply with the FRC’s Policy on Developing Statements of Recommended Practice (SORPs).
The role of the SORP Working Party is to address all direct and indirect matters impacting on the Pensions SORP, under approved terms of reference.
More about PRAG
The Pensions Research Accountants Group (PRAG) is an independent research and discussion group for the development and exchange of ideas in the pensions field. PRAG’s efforts are mainly in the areas of reporting and accounting by pension schemes, but PRAG also produces reports on other related matters.
PRAG is a non-profit making organisation. It’s membership is drawn from the auditing profession, specialist accountants working for third party administrators and for in-house pension scheme entities, and pensions specialists from other professions and disciplines.
Responses are requested by 5pm on Friday 23 June 2023. ICAS members who wish to respond should please email Christine Scott, Head of Charities and Reporting, at connect@icas.com for further information on how to relay comments to the Working Party.
