2026 Pensions SORP

Pensions Research Accountants Group (PRAG) has, today, released the Statement of Recommended Practice, Financial Reports of Pension Schemes 2026 (the “2026 SORP”).

Following extensive pre-consultations across stakeholder groups, and detailed consideration of the responses to the formal consultation process which closed in Q4 2025, the final 2026 SORP has been released onto the member section of the PRAG website / Member area / Publications.
The 2026 SORP is required to be adopted for all periods commencing on or after 1 January 2026.

Webinar
It is currently proposed to hold a (free-to-all) Webinar on Thursday 19 March 2026 at 12.30 pm for all interested parties to hear, first-hand, further details about the 2026 SORP. We would encourage all stakeholders to attend.

Please ‘REGISTER’ for the webinar via the following link: SORP Webinar  

If we can ask if the above details can please be shared within your organisation and to colleagues, as the webinar is available to all stakeholders.

Andy Lowe, Chair of the PRAG SORP Working Party, said: 
“The SORP was last reviewed and updated in 2018. Since that time, the FRC has made a number of amendments to FRS 102. There have also been a number of industry developments which impact on pension scheme financial reporting; for example in pension scheme investment strategies. In addition, there have been changes to pensions legislation and regulations.
Therefore, the updates to the SORP have been to apply the changes required to be consistent with FRS 102 and also current pension legislation and regulations, alongside updates to reflect current pension scheme developments.
Prior to the release of the draft SORP and consultation process, in Q2 2025, extensive engagement had already taken place across stakeholder groups as to any proposed changes to the SORP.
Formal and informal responses to the consultation process were received and we are grateful to all stakeholders for their engagement, comments and observations.
Respondents to the consultation process generally supported the proposals to amend the SORP, that were raised in the three key questions, as being reasonable and proportionate. These three question were with respect to (a) fair value determination; (b) investment risk disclosures; and (c) sole investor pooled arrangements. Some comments and questions were raised in these three areas and we have sought to address these, where appropriate, within the final 2026 SORP, and also through updating the Basis for Conclusions.
There were also a number of ‘other comments’ raised as part of question four, including editorial amendments. We have sought to diligently work through each of these and address them, where appropriate, on a consensus basis, either within the final 2026 SORP or within the Basis for Conclusions. In all cases, we are required to ensure that any changes to the SORP are not inconsistent with FRS 102 or relevant legislation and regulations.
We thank all parties, including the Financial Reporting Council (FRC), for their engagement in the process of updating the SORP.
All parties are encouraged to now work to fully implement the 2026 SORP and the illustrative Financial Statements (Appendix 1) and illustrative Annual Report (Appendix 2).”

Next steps
The protected PDF version on the PRAG website is the temporary version of the 2026 SORP. We wanted to distribute this to all members as soon as practicable after it was approved for release. We are now in the process of arranging for a printable version to be prepared. Details as to its availability will be communicated to all members and other interested parties in due course.
 
9 March 2026
 
The Pensions Research Accountants Group (‘PRAG’) is the FRC’s designated SORP-making body for pension schemes. PRAG is a leading independent industry body working for the development of occupational pension schemes, with a focus on financial reporting and internal control.