Definition: Non-autonomous funded pension scheme

Category: National accounts

A non-autonomous funded pension scheme organised by an employer for its own staff is funded in the case where the employer builds up a segregated reserve – because of legal obligations, specific regulations, contractual clauses, accounting standards or only on a
voluntary basis - for the explicit and exclusive purpose of paying pensions to their employees, ex-employees or their dependants. Consequently, the book value of this
reserve as reported in the employer’s balance sheet has to represent a predominant part of the actuarial value of the pension obligations.
This reserve ensures a strong protection of the pension rights of the beneficiaries, notably in the case of bankruptcy of the employer, or in the case of mergers. The reserve is invested in assets that are identifiable in the balance sheet of the corporation.
In ESA95, this obligation is recorded as AF.612 (“Net equity of households in pension funds
reserves”). http://ec.europa.eu/eurostat/ramon/statmanuals/files/KS-BE-04-003-EN.pdf