CHP 33: Reporting Results

Question 1

List examples of information that may be disclosed to members of a benefit scheme

Answer 1

SCRIBE

• Strategy for investment
• Contribution obligations
• Risks involved
• Insolvency entitlement
• Benefit entitlements
• Expense charges

Question 2

List the reasons why disclosure of information to scheme beneficiaries and also to the provider or sponsor is important.

Answer 2

SIMMERS

• Sponsor is aware of financial significance of benefits
• Informed decisions can be made
• Mis-selling (or misleading beneficiaries) is avoided
• Manages the expectations of members
• Encourages take up
• Regulatory requirement
• Security of scheme improved as sponsor / trustees are made more accountable

Question 3

List 9 items that owners of benefit providers may be required to disclose in accounts

Answer 3

DIM CLAIMS

• Director’s benefit cost over the year
• Investment return achieved on the assets over the year
• Membership movements
• Change in the surplus / deficit over the year
• Liabilities accruing over the year (value of)
• Assumptions used
• Increase in the past service liabilities over the year
• Method used
• Surplus / deficit