CARRIER (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2020
NOTES TO THE FINANCIAL STATEMENTS
All amounts in tables are in £ thousands unless otherwise stated.
1 General information
The Scheme is established as a trust under English law on 30 April 1976 to provide benefits to relevant employees of the Principal and Participating Employers and is registered in the United Kingdom. The registered office is at Pentagon House, Sir Frank Whittle Road, Derby DE21 4XA.
The Scheme closed to new members with effect from 1 May 2006.
In accordance with HMRC requirements the Scheme is registered under Chapter 2, Part 4 of the Finance Act 2004. As a consequence both employee and employer contributions are normally eligible for tax relief and income and capital gains earned by the Scheme receive preferential tax treatment. The Scheme is governed by the Trust Deed and Rules and is a defined benefit arrangement. All members of the Scheme were contracted-out of the State Second Pension, up until 6 April 2016 when contracting- out by final salary pension schemes was abolished by the Government. The Participating Employers of the Scheme commenced a consultation with active members in September 2019 with regard to a proposal to close the Scheme to the future accrual of benefits. The consultation process concluded in November 2019, following a 60 day consultation period as required by law. Following a period of reflection the Participating Employers decided to proceed with the closure with effect from 31 March 2020. The affected members were informed of this decision in notices issued by the Participating Employers in December 2019.
The Principal Employer issued a formal notice of termination of the Scheme to the Trustee on 26 February 2020. As a consequence from 31 March 2020 no further benefits will accrue in the Scheme.
2 Basis of preparation of the financial statements
The individual financial statements of Carrier (UK) Pension Scheme have been prepared in accordance with the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996, Financial Reporting Standard (FRS) 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland issued by the Financial Reporting Council (“FRS 102”) and the guidance set out in the Statement of Recommended Practice “Financial Reports of Pension Schemes” (revised June 2018) (“the SORP”).
3 Accounting policies
The following principal accounting policies, which have been applied consistently, have been adopted in the preparation of the financial statements.
Currency The Scheme’s functional currency and presentational currency is pounds sterling (GBP).
Assets and liabilities in foreign currencies are expressed in sterling at the rates of exchange ruling at the year end. Foreign currency transactions are translated into sterling at the spot exchange rate at the date of the transaction.
Gains and losses arising on conversion or translation are dealt with as part of the change in market value of investments.
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