Docusign Envelope ID: 7C50003C-051D-4E0C-907A-F452AD5C4EA2
UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2023
NOTES TO THE FINANCIAL STATEMENTS
Gains and losses arising on conversion or translation are dealt with as part of the change in market value of investments.
Contributions Employers’ contributions towards expenses and PPF levies are accounted for by reference to the Schedule of Contributions and Payment Deed and, if appropriate, on the same basis as the corresponding expense.
Employer augmentation contributions are accounted for in accordance with agreements under which they become payable.
Benefits Pensions in payment are accounted for in the period to which they relate.
Where members can choose whether to take their benefits as a full pension or as a lump sum with reduced pension, retirement benefits are accounted for on an accruals basis on the later of the date of retirement and the date the option is exercised.
Other benefits are accounted for on an accruals basis on the date of retirement, death or leaving the Scheme as appropriate.
Where the Trustee has agreed or is required to settle tax liabilities on behalf of a member (such as where lifetime or annual allowances are exceeded) with a consequent reduction in that member’s benefits receivable from the Scheme, any taxation due is accounted for on the same basis as the event giving rise to the tax liability and shown separately within Benefits. Transfers to other schemes Transfer values represent the capital sums payable to the pension schemes of new employers for members who have left the Scheme. These are accounted for on an accruals basis on the date that the trustees of the receiving scheme accept the liability. In the case of individual transfers, this is normally when the payment of the transfer value is made. Administrative and other expenses Administrative expenses and investment management expenses are accounted for on an accruals basis. Investment income and expenditure Income from pooled investment vehicles which distribute income, is accounted for on an accruals basis on the date they are quoted ex-dividend/interest. Income from bonds is accounted for on an accruals basis and includes income bought and sold on purchases and sales of bonds. Other interest on cash and short-term deposits and income from other investments are accounted for on an accruals basis.
Interest payable on repurchase agreements is accounted for in the period it falls due.
Income from Asset Backed Funding arrangements is accounted for on an accruals basis.
Income arising from annuity insurance policies is included in investment income and accounted for on an accruals basis.
The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments and unrealised changes in market value. In the case of pooled investment vehicles which are accumulation funds, where income is reinvested within the fund without issue of further units, change in market value of investments also includes such income.
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