Hindsight is a wonderful analytical tool, but its practical applications are limited, of course, to pinpointing problems after they have arisen rather than being able to prevent them from happening in the first place.
We do not have the ability to foretell the future, but we can make changes when we recognise where mistakes have been made in the past and for those that are ready to act quickly there are significant benefits to be had. Nowhere is this fleet footed approach more important than in the world of pensions. Read more »
There has been a huge increase in the number and size of not-for-profit organisations over recent years, fuelled by local authorities’ appetite for out-sourcing public sector services. Most of these bodies are small, run on tight budgets and receive much of their funding from the public purse. Significant growth in this sector continues as the government seeks to control its public spending by laying off liabilities to these private sector suppliers. Read more »
I read with great interest the news that Government ministers had bowed to pressure from local authorities and found an extra £1bn to plug this year’s budget shortfalls, £300m of which was necessary to fund their collective pension scheme deficits. The move followed lobbying by the Local Government Association in an attempt to stave of what would have been a politically unpalatable 10 per cent rise in council tax in the run up to the general election. Read more »
We’ve been being asked a lot recently to confirm in what circumstances charities and not for profit organisations with final salary pension funds need to provide full FRS17 disclosures in their company accounts.
The first requirement is to establish if the company is a “stand alone” scheme or is part of a “multi-employer” scheme. If the body has its own pension fund in which it is the only participating employer and which has separately identifiable assets and liabilities then there seems little doubt that full disclosure will now be required. Read more »