New guidance for charities with multi-employer defined benefit pension plans
The charity regulators behind SORP have recently published new guidance for charities participating in multi-employer defined benefit pension plans who will now have to include figures for liabilities in their annual accounts.
In May 2019 the Financial Reporting Council (FRC) issued an amendment to FRS 102 relating to multi-employer defined benefit plans. The joint SORP-making body decided not to include the amendments in the SORP (FRS 102). However, it agreed that additional guidance via the information sheet would be useful when a charity participates in a defined benefit plan, which is a multi-employer plan accounted for as if the plan were a defined contribution plan, and sufficient information to use defined benefit accounting becomes available.
The guidance is called Information Sheet Four and takes effect for accounting periods beginning on or after 1 January 2020 and applies to charities in the UK and Republic of Ireland with multi-employer defined benefit pension plans.
A copy of Information Sheet Four can be found here:
If you would like further information or advice on reporting pension liabilities, please contact our Charities team.