NAPF seeking to address pension fund accounting issues

The National Association of Pension Funds (NAPF) is to assess the pension scheme accounting standards that are currently in place in the UK.

According to the organisation, the balances of pension schemes may appear volatile because of the present system, while the standards seem to have had a negative impact on defined benefit provisions in recent times.

Lindsay Tomlinson, Chairman of NAPF, believes that a new approach is required to improve the accounting of the country's pension schemes.

"Current accounting standards have been very damaging to defined benefit provision, leading many companies to close their schemes," he stated.

"Pension funds are long-term institutions but today's accounting standards fail to reflect this."

A summit will soon be launched by NAPF in order to address issues relating to pension accounting.

Earlier this week, NAPF also confirmed that its Pension Quality Mark has been given to the pension schemes operated by a further three organisations.

Posted by Liam Tomlinson.