In this new volatile world, FRS102 and IAS 19 valuations of Defined Benefit (DB) pension schemes can feel like a lottery.
Frequent shocks to the financial markets – and to the assumptions used to value pension liabilities for accounting purposes – are the new norm. Year-end dates only a few months apart can lead to drastically different assessments of the balance sheet position of a pension scheme and, as a result, the impact on its sponsor’s overall financial position.
We know that companies with Defined Benefit pension schemes want to avoid year-end surprises and regain control of the Pension Cost Accounting process. Our Pension Cost Accounting Index monitors the balance sheet position for the average scheme, and can provide an early warning of any potential shocks.