Summary and implications
Deadlines for submitting information to the PPF for the 2011/12 and 2012/13 levy are looming. It is very important for schemes not to miss these if they wish that information to be taken into account in the calculation of the levy. Failure to provide the information on time will mean missing out on a potential reduction in the risk-based levy.
The deadlines for submitting the relevant information via the Pensions Regulator’s Exchange system for PPF levy purposes are:
- 5 p.m. on 31 March 2011 for certification/re-certification of contingent assets (e.g. guarantees);
- 5 p.m. on 7 April 2011 for deficit reduction contributions;
- 5 p.m. on 30 June 2011 for final certification of full block transfers that have taken place up to and including 31 March 2011. A full transfer is a transfer of members to one or more PPF-eligible schemes, leaving fewer than two members left in the transferring scheme as at 1 April 2011.
Although the PPF has not yet published the promised policy statement on the new formula for calculating the levy from 2012/13 (for three years at a time), it is still important to submit up-to-date information for use in setting the levy scaling factor by 31 March 2011. The PPF has stated that, if it implements transitional protection, employer insolvency scores as at 31 March 2011 will be used.
Note that (unlike previously) there will be no reporting deadline in June 2012 for Qualifying Transfers (partial transfers of £1.5m, or more than five per cent of the assets of either the transferring or the receiving scheme) for the purposes of the 2012/13 levy.