In accordance with the Pension Protection Fund’s (PPF) guidance on carrying out a section 179 valuation, actuaries should include a section 179 certificate as part of their report to the scheme’s trustees. The previous position was that information included in the section 179 certificate was submitted directly to the PPF. However, this information is now submitted to the PPF as part of the annual scheme return by way of TPR’s online “Exchange” system.
The template section 179 certificate that should be included in the actuary’s report to the trustees has been updated to take account of the requirements of Exchange and may be accessed via the following link to the Valuation Guidance section of the PPF’s website. The certificate should not now be sent directly to the PPF.
Where the annual scheme return has already been submitted, it is still possible to update the section 179 valuation pages of Exchange, and provided this is done before 31 March 2009, the information submitted will be used in the calculation of the 2010/11 levy.
The relevant PPF guidance is currently being updated to reflect this change.
In addition, the PPF Board has confirmed that it will not, for the time being, adjust its valuation assumptions in respect of section 143 and section 179 valuations. Legislation states that the PPF’s assumptions should reflect insurance company buy-out price assumptions. However, the Board has reached this decision in the light of current market volatility.