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Pension contributions

Are they disclosable in FRS accounts?

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Client contributes to director's personal pension schemes and also auto-enrolment for them and staff. Benefits can't be defined, as these aren't company schemes. However I've seen company accounts with this scenario where there is a note on defined contribution pension schemes. Is this note required in this case or not, and if so, why?

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By Moonbeam
12th Apr 2019 12:43

Just realised I was confused between defined benefits and defined contributions, and now understand that in this case we are talking defined contributions, not benefits and therefore will disclose.

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By johnt27
12th Apr 2019 12:48

You don't refer to which FRS you're applying but here goes:

FRS 105 - No
FRS 102 1A - No
FRS 102 - Yes - you disclose both contributions paid in wages/salaries notes and amounts outstanding (subject to taking key management personnel reduced disclosures)
FRS 101 - Yes - as above

The only exception to the above would be when you interpret the pension payments to be RPTs at a non-market rate (similar to old low salary/big divis) argument.

I think the only time you would use the above would be in the following example:
Director employs spouse in admin role - they receive salary and dividends commensurate to role but each year get £50k pension contribution (or whatever the current tax rules allow). As this wouldn't be available to an unconnected person in the same role it's disclosable as not market value.

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Replying to johnt27:
By Moonbeam
12th Apr 2019 15:47

Thank you John for this excellent advice.

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