Pensions SORP issued for consultation
The Pensions Research Accountants Group (PRAG) issued the revised draft pensions statement of recommended practice (SORP), which now enters a three-month consultation on the proposed changes. The final version of the pensions SORP is expected to be issued in December 2025.
PRAG issued the revised draft pensions SORP on 24 June 2025, the consultation closes on 17 September 2025 following approval by the Financial Reporting Council.
The final version of the pension SORP is due to be issued in December 2025, ahead of the implementation date for years commencing on or after 1 January 2026, years ended 31 December 2026, 31 March 2027 and 5 April 2027. It is worth noting that early adoption is permitted.
Key changes
The update to the pensions SORP is to align it to the most recent edition of FRS 102 and some recent industry developments. There are no major changes to the SORP however, there are proposed changes that will impact most pension schemes including:
- introducing the requirement to make disclosures on liquidity risk
- investment performance commentary should focus on the specific circumstances of the scheme recognising the differences between DC and DB arrangements
- annuity contracts can no longer be valued using annuity provider values
- further guidance on derivatives, repurchase agreements and short sold bonds
- bulk transfers out to be disclosed on the face of the primary statements
- further guidance on going concern considerations
- requirement for an investment movement note
- some changes to the investment movement note
- changes to disclosures for sole investor funds
- further guidance on contingent liabilities
- guidance on the treatment of surplus utilised.
There is no change to the valuation basis of investments, and no further guidance on master trusts, CDCs or super funds, as this will be addressed in further updates.
Follow this link to access the draft SORP and for details of how to respond to the consultation.
Next steps
Trustees should discuss with their account’s preparers and auditors the impact of these changes on their scheme and the timing of the implementation. Shona Harvie is a member of the PRAG SORP Working Party which means Crowe are well placed to take you through the changes at the appropriate time. For further information contact Shona Harvie or your usual Crowe contact.