A number of deadlines for PPF levies will soon be upon us. Trustees who want to minimise their levy will need to ensure that the deadlines are not missed. Employers will also have an interest here, since they pick up levy costs, directly or indirectly.
The 2011/12 levy
The 2011/12 levy is based primarily on data as at 31 March 2010. However, certain measures taken after that date may serve to reduce the levy, provided that the PPF’s rules are met. The deadlines are as follows:
- Any contingent asset arrangements will need to be certified or recertified by 5 p.m. on 31 March 2011.
- Any deficit reduction contributions will need to be paid by 31 March 2011 and certified by 5 p.m. on 7 April 2011.
- Any “full” block transfers will need to be made by 31 March 2011 and certified by 5 p.m. on 30 June 2011.
Note that a contingent asset arrangement which was certified for the purpose of years will need to be recertified in order for it to be recognised for 2011/12.
The 2012/13 levy
The PPF have not yet reached a final decision about the basis on which the 2012/13 levy will be determined. However, the PPF have indicated that:
- “The measurement date would be aligned to the start of the levy year.” In other words, the levy would be based on data as at 30 March 2012. (31 March 2012 is a Saturday!)
- However, an employer’s insolvency risk would be assessed on the basis of its D&B failure scores over the year to the start of the levy year. An employer’s score as at 31 March 2011 could be relevant too, if the PPF decides to bring in a system of “transitional relief”.
- Deadlines for levy-reduction measures are likely to be consistent with current practice. For example, any contingent asset arrangements would need to be certified or recertified by 30 March 2012.
We would be glad to assist clients in connection with any levy-reduction measures. However, please note that we will take action only where specifically instructed by you.
If you do wish us to assist, please contact us as soon as possible. Some of the necessary processes may take a significant amount of time to complete. And the PPF will almost never waive the deadlines or otherwise relax their rules.