Pensions Research Accountants Group (PRAG) is proposing changes to

• fair value reporting
• investment risk disclosures and
• sole investor pooled arrangements.

PRAG is also needing to update the SORP as a result of a number of changes to FRS 102 (re September 2024 version) and industry developments which impact on pension scheme financial reporting.

The requirements of the new “2025 SORP” will be applicable for all scheme financial years commencing on or after 1 January 2026.

Fair value – will requires the continued use of bid pricing (as currently), as opposed to allowing individual choice, acknowledging that a practical expedient is not required as bid pricing is readily available. Also, the option to use annuity provider valuations is removed to ensure that there are no restrictions on the availability of information to meet the required disclosure.

Investment risk – requiring liquidity risk to be included in investment risk disclosures (extending the FRS 102 definition of liquidity risk to include capital commitments and potential collateral calls).

Sole investor pooled arrangements – separated from pooled arrangements open to other investors to highlight they are different in nature.

The deadline for consultation comments is 17 September 2025.