Some employers need to show their pension liability in their annual accounts. If you are unsure if this applies to you, check with your auditor.
The assumptions used in these reports are fixed and are very different to those used for the valuation and calculation of the employer contribution rate. Therefore, the new employer may not start off fully funded on this basis and have a deficit.
Employers can ask the Kent Pension Fund (the Fund) actuary to use different assumptions within the range permitted, providing they have taken actuarial advice first. The Fund actuary will charge a high fee if bespoke assumptions are required. The schedule of fees gives more information about the cost of these reports.
The academies financial reporting year ends on 31 August. The Treasury and Investments team will need to know if you are required to show pension costs within your accounts in accordance with financial reporting standard 102 (FRS102), in order to provide you with the information you require regarding this. If you are unclear on whether this is required, then you should discuss this with your auditors.
The date of the academy’s conversion does not have an effect on whether you will receive a FRS report within the accounting year you convert. If conversion takes place:
- on or before 31 March – you will automatically receive a report on the following 31 August
- before 31 August – you will need an accounting report regardless of how recently the conversion has taken place.