Barnett Waddingham LLP
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PRACTICE NOTES
This Practice Note
Provides practical guidance for trustees, as well as sponsoring employers, on operating a defined benefit (DB) pension scheme that has been closed to future accrual, ie with no ‘active’ members accruing pensionable service in the scheme. It does not address the act of closing itself, nor the factors considered in reaching a decision to run a closed scheme rather than proceed to wind-up. It likewise excludes the steps involved in winding up a scheme or managing a scheme in preparation for entry to the Pension Protection Fund (PPF).
For details on these topics, refer to the following Practice Notes:
Closing a pension scheme to future accrual—trustee considerations
Closing a pension scheme to future accrual—employer considerations
Trustee decisions and the Pension Protection Fund
Winding up a defined benefit (DB) occupational pension scheme
Often, the initial move when closing is (though not
Pensions
PRACTICE NOTES
STOP PRESS :
The Pensions Research Accountants Group (PRAG) has released the Statement of Recommended Practice, Financial Reports of Pension Schemes 2026 (SORP) following broad pre-consultations with stakeholder groups and a thorough review of feedback to the formal consultation, which closed in Q4 2025. SORP 2026 applies to accounting periods starting on or after 1 January 2026. The SORP was last overhauled in 2018, and the latest amendments ensure alignment with Financial Reporting Standard 102 and current pensions legislation and regulations. Consultation respondents largely endorsed the proposed changes in the three principal areas—fair value determination, investment risk disclosures and sole investor pooled arrangements—considering them appropriate and proportionate.
This Practice Note is being updated to reflect these changes. THIS PRACTICE NOTE APPLIES TO UK OCCUPATIONAL PENSION SCHEMES
This Practice Note on pension scheme annual reports and accounts is based on:
the latest Financial Reports of Pension
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT LIABILITIES
How defined benefit (DB) liabilities ought to be assessed depends on a number of factors, in particular:
the valuation approach to be adopted. Common exercises undertaken comprise the following:
scheme-specific funding valuations as required under Part 3 of the Pensions Act 2004 (PeA 2004)
solvency (or buy-out) valuations as required by the Occupational Pension Scheme (Scheme Funding) Regulations 2005, SI 2005/337, reg 7
valuations required by the PeA 2004, ss 143 and 179 (often described respectively as s 143 valuations and s 179 valuations)
neutral estimates to meet the requirements of Technical Actuarial Standard 300 (Pensions)
cash equivalent transfer values (CETV) as
Pensions
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