Yes, it’s that time of year again. The start of a new quarter and, once again, the pace of change in the pensions world continues unabated. Your team at Spence has pored over the various legislative changes, reviewed in detail the consultations and kept their fingers on the pulse of current issues in order to bring you a condensed summary of the highlights from the first three months of 2017.
As such, you can see at a glance the key issues you need to be aware of from the last quarter, and we’ve even put together a handy summary of what topics and dates to keep a look out for in the next quarter.
Topics covered in this quarter’s update include:
- News from the PPF;
- Consultation on the future of defined benefit pensions;
- Highlights from the investment markets;
- The ever-increasing value of scheme liabilities;
- with many other highlights besides.
So what are you waiting for?… Click here to download your copy of the Spence Quarterly Update!
Our latest report details market movements over the 3 month period to 30 June 2016, and how this impacts the key financial assumptions required for determining pension liabilities under FRS102 or IAS19.
Major asset classes have had a relatively strong performance over the 3 month period to 30 June 2016. This strong performance follows on from the similar growth experienced in the Q1 of 2016. However, these asset classes have had their value distorted somewhat by ‘Brexit’ in the final week of the quarter. Furthermore, it is likely that any investment gains will be more than offset by increases in schemes’ liabilities (as a result of lower bond yields due to investors’ “flight to quality”), resulting in lower funding levels. To help draw attention to the practical implications, the effect of these market conditions have been illustrated on a typical pension scheme.
Finally, we also review the recent Brexit vote and how this will likely impact upcoming FRS 102 or IAS19 valuations.
Having witnessed strong returns on assets over the last 12 months, many scheme sponsors could be, optimistically, looking forward to reporting improved balance sheet positions in 2015. Unfortunately, record low bond yields are likely to have more than offset these gains for most schemes due to their effect on liability valuations. Pension costs charged through the P&L will continue to rise, with further increased charges likely next year as a result of forthcoming changes in pensions accounting standards.
In this Spence Special Report on Pensions Accounting, we describe the asset/liability balancing act in light of market movements over the past year. To help draw attention to the practical implications, the effect on a typical scheme is illustrated.
We also review recent developments in the arena of pensions accounting, highlighting issues that may be of interest.
Click here to download your Pensions Accounting Update.
Having witnessed strong returns on assets over 2014, many scheme sponsors could be looking forward, optimistically, to reporting improved balance sheet funding positions in 2015.
However, assets are only one part of the picture.
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