Provisions and Reporting Flashcards
1
Q
Reasons for Calculating Provisions
A
BAD MEDICS
Benefit improvements for a benefit scheme
Accounts and reports (published and internal)
Discontinuance / surrender benefits
Mergers and acquisitions Excess of A over L and so whether discretionary benefits can be awarded Disclosure information for beneficiaries Investment strategy Contribution / premium setting Statutory Solvency Reports
2
Q
Information to be Disclosed to Benefit Scheme Members
A
SCRIBE
Strategy for investment Contribution Obligations Risks Involved Insolvency Entitlement Benefit Entitlements Expenses charges
3
Q
When Information from a Benefit Scheme should by Disclosed
A
PRICE
Payment commencement Request Intervals Combination Entry
4
Q
Benefit Scheme Information to be Disclosed in Accounts
A
DISCLOSURE
Directors' Pension cost Investment Strategy + Performance Surplus / Deficit last year and to date Calculation method and assumptions Liabilities arising last year and to date Options and guarantees Sponsors' Contributions Uncertainties / risks Rights on wind up Expenses
5
Q
Reasons why Disclosure is Important
A
SIMMERS
Sponsor is aware of financial significance of benefits
Informed decisions can be made
Mis-selling is avoided
Managed the expectations of members
Encourages take up
Regulatory Requirement
Security of scheme improved as sponsor / trustees are made more accountable
