Company benefits: into a new age
Article Abstract:
About half the UK workforce belongs to an occupational pension plan, and about 95 percent of these workers are members of final salary schemes. Final salary schemes are often confusing to employees, but they have served the pension requirements of large organizations despite legislative complexities. The government desires greater flexibility and choice in pension options, however, and has introduced a contracted-out money purchase (COMP) scheme as an alternative. COMP plans are less expensive and more beneficial for younger employees and early leavers, and allow employers either to reduce employment costs or to provide additional benefits without additional cost. They are easier to administer than traditional pension schemes, and are more appropriate for today's employment environment. In formulating policies for their contracted-out schemes employers are constrained by their existing policy in anticipation of future legislative changes.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1988
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Accounting U.S. style: how not to do it?
Article Abstract:
The Statement of Financial Accounting Standards No. 87 of the US Financial Accounting Standards Board concerns the profit and loss charge for pension costs. It consists of three parts: service costs plus interest costs minus estimated return on assets. No. 87 requires further that liabilities be calculated on the basis of interest rates prevailing in the market for fixed interest securities. This means that pension costs will be highly variable. Further adjustments must be made for surplus or deficits, benefit enhancements, and adjustments for the difference between pension liabilities and current market value of assets. This will tend to create surpluses because of stock market levels and real interest rates. No. 87 is especially important to UK firms filing with the US SEC or UK subsidiaries of US firms.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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A very British muddle
Article Abstract:
This is a commentary on how the state earnings pension scheme in the U.K. with its defined benefit (DB) compares to the defined contribution (DC) personal pension.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 2001
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