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GRI Training Partner GRI 201 · Economic Performance · Disclosure GRI 201-3

Defined benefit plan obligations and other retirement plans

GRI 201-3 · mandatory · coverage + narrative

Disclosure 201-3 requires an organization to report information about defined benefit plan obligations and other retirement plans. If plan liabilities are met from the organization’s general resources, the organization reports the estimated value of those liabilities.

Legal status

GRI 201: Economic Performance 2016 remains the applicable standard at the date of this review. GRI is revising standards under its Economic Impact project; preparers should monitor the official GRI Standards register.

Disclosure focus

If a separate fund exists to meet the liabilities, the organization reports the extent to which the liabilities are covered by assets set aside, the basis used to calculate the coverage and the date of the estimate. If the fund does not provide full coverage, the organization reports the employer’s strategy, if any, for working toward full coverage and the timescale, if any, for achieving it.

The organization also reports the applicable percentage of salary contributed by the employee or employer and describes the level of participation in the retirement plans. Participation may be explained through mandatory or voluntary coverage, the employee populations or jurisdictions covered and, where useful, the number or percentage of eligible employees participating.

GRI recommends calculating the information in accordance with the regulations and methods of the relevant jurisdictions, reporting aggregated totals and using consolidation techniques consistent with those applied in the organization’s financial accounts. A shortfall in a separately funded plan is not automatically the same as a liability met from the organization’s general resources.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official Global Reporting Initiative source.

Prepare

What to collect before drafting

Tick each field as the evidence lands. Owners are the teams that usually hold the source files.

  • Plan type, entity and employee population

    People / Pensions / Finance

    Disclosure 201-3 requires an organization to report information about defined benefit plan obligations and other retirement plans. If plan liabilities are met from the organization’s general resources, the organization reports the estimated value of those liabilities.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting plan type, entity and employee population.

    Watch for The published response for plan type, entity and employee population is incomplete or does not match the supporting records.

  • Liabilities met from general resources

    People / Pensions / Finance

    Disclosure 201-3 requires an organization to report information about defined benefit plan obligations and other retirement plans. If plan liabilities are met from the organization’s general resources, the organization reports the estimated value of those liabilities.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting liabilities met from general resources.

    Watch for The published response for liabilities met from general resources is incomplete or does not match the supporting records.

  • Separate-fund assets and coverage

    People / Pensions / Finance

    If a separate fund exists to meet the liabilities, the organization reports the extent to which the liabilities are covered by assets set aside, the basis used to calculate the coverage and the date of the estimate. If the fund does not provide full coverage, the organization reports the employer’s strategy, if any, for working toward full coverage and the timescale, if any, for achieving it.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting separate-fund assets and coverage.

    Watch for The published response for separate-fund assets and coverage is incomplete or does not match the supporting records.

  • Coverage basis and estimate date

    People / Pensions / Finance

    If a separate fund exists to meet the liabilities, the organization reports the extent to which the liabilities are covered by assets set aside, the basis used to calculate the coverage and the date of the estimate. If the fund does not provide full coverage, the organization reports the employer’s strategy, if any, for working toward full coverage and the timescale, if any, for achieving it.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting coverage basis and estimate date.

    Watch for The published response for coverage basis and estimate date is incomplete or does not match the supporting records.

  • Funding strategy and timescale

    People / Pensions / Finance

    If a separate fund exists to meet the liabilities, the organization reports the extent to which the liabilities are covered by assets set aside, the basis used to calculate the coverage and the date of the estimate. If the fund does not provide full coverage, the organization reports the employer’s strategy, if any, for working toward full coverage and the timescale, if any, for achieving it.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting funding strategy and timescale.

    Watch for The published response for funding strategy and timescale is incomplete or does not match the supporting records.

  • Employee and employer contribution rates

    People / Pensions / Finance

    The organization also reports the applicable percentage of salary contributed by the employee or employer and describes the level of participation in the retirement plans. Participation may be explained through mandatory or voluntary coverage, the employee populations or jurisdictions covered and, where useful, the number or percentage of eligible employees participating.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting employee and employer contribution rates.

    Watch for The published response for employee and employer contribution rates is incomplete or does not match the supporting records.

  • Level of participation

    People / Pensions / Finance

    The organization also reports the applicable percentage of salary contributed by the employee or employer and describes the level of participation in the retirement plans. Participation may be explained through mandatory or voluntary coverage, the employee populations or jurisdictions covered and, where useful, the number or percentage of eligible employees participating.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting level of participation.

    Watch for The published response for level of participation is incomplete or does not match the supporting records.

  • Jurisdictional method, aggregation and consolidation

    People / Pensions / Finance

    GRI recommends calculating the information in accordance with the regulations and methods of the relevant jurisdictions, reporting aggregated totals and using consolidation techniques consistent with those applied in the organization’s financial accounts. A shortfall in a separately funded plan is not automatically the same as a liability met from the organization’s general resources.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting jurisdictional method, aggregation and consolidation.

    Watch for The published response for jurisdictional method, aggregation and consolidation is incomplete or does not match the supporting records.

Before you start

  • Cover applicable defined benefit obligations and other retirement plans for the reporting entities and relevant employee populations or jurisdictions.
  • Distinguish liabilities met from general resources from a shortfall in a separately funded plan. Report fund coverage, basis, date, strategy and timescale only where those conditions apply.
  • Have the supporting records and the final response been reconciled?
+ Show GRI 201-3 sub-elements (LRA working checklist)

How to prepare it

Cover applicable defined benefit obligations and other retirement plans for the reporting entities and relevant employee populations or jurisdictions.
Collect and reconcile the records for: Plan type, entity and employee population; Liabilities met from general resources; Separate-fund assets and coverage; Coverage basis and estimate date; Funding strategy and timescale; Employee and employer contribution rates; Level of participation; Jurisdictional method, aggregation and consolidation.
Distinguish liabilities met from general resources from a shortfall in a separately funded plan. Report fund coverage, basis, date, strategy and timescale only where those conditions apply.
Draft the response using the defined terms shown in the disclosure focus; do not substitute broader internal labels.
Review the final wording against every requirement and the supporting governance or data records before sign-off.

Request the data

Request the disclosure evidence

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

Provide the plan register; populations and jurisdictions; general-resource liabilities; separate-fund liabilities, assets, fair-value basis and estimate date; shortfall strategy and timescale; employee and employer contribution rates; participation data; consolidation and financial-account reconciliation.

Use the organisation's own role and document names, but preserve the defined GRI terms and the scope described above.

Better request

Provide the plan register; populations and jurisdictions; general-resource liabilities; separate-fund liabilities, assets, fair-value basis and estimate date; shortfall strategy and timescale; employee and employer contribution rates; participation data; consolidation and financial-account reconciliation.

Draft your disclosure

Notes that turn data into a disclosure

LRA training templates — adapt them to your organisation, and check the official source before sign-off.

Method note

Apply relevant jurisdictional regulations and methods, report aggregated totals where appropriate and use consolidation techniques consistent with the organisation's financial accounts.

Context note

Explain participation through mandatory or voluntary coverage, populations or jurisdictions and, where useful, eligible-employee participation counts or percentages.

Download Centre

Preparation tools & forms

Download preparation tools for GRI 201-3 with free verified email access for 24 hours. Source-report links remain public.

Free · Email access

Check

For each claim, check the evidence

  • Plan type, entity and employee population is reported accurately and completely.

    Risk The response omits, misclassifies or overstates plan type, entity and employee population.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting plan type, entity and employee population.

  • Liabilities met from general resources is reported accurately and completely.

    Risk The response omits, misclassifies or overstates liabilities met from general resources.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting liabilities met from general resources.

  • Separate-fund assets and coverage is reported accurately and completely.

    Risk The response omits, misclassifies or overstates separate-fund assets and coverage.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting separate-fund assets and coverage.

  • Coverage basis and estimate date is reported accurately and completely.

    Risk The response omits, misclassifies or overstates coverage basis and estimate date.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting coverage basis and estimate date.

  • Funding strategy and timescale is reported accurately and completely.

    Risk The response omits, misclassifies or overstates funding strategy and timescale.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting funding strategy and timescale.

  • Employee and employer contribution rates is reported accurately and completely.

    Risk The response omits, misclassifies or overstates employee and employer contribution rates.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting employee and employer contribution rates.

  • Level of participation is reported accurately and completely.

    Risk The response omits, misclassifies or overstates level of participation.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting level of participation.

  • Jurisdictional method, aggregation and consolidation is reported accurately and completely.

    Risk The response omits, misclassifies or overstates jurisdictional method, aggregation and consolidation.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting jurisdictional method, aggregation and consolidation.

Evidence pack to prepare

Common reporting gaps

  • Treating a funded-plan shortfall as a liability met from general resources.
  • Using liabilities and plan assets from different dates.
  • Reporting a funding strategy without a timescale.
  • Combining employee and employer contribution rates.
  • Using union participation as retirement-plan participation.
  • Omitting reconciliation to the financial accounts.
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Dr Ross Kurinko

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Framework references

Relevant GRI requirements and related disclosures

GRI

GRI 201-3

within GRI 201: Economic Performance

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