The PPF's consultation on the 2012/13 levy determination includes some proposed changes to the contingent asset rules:

  • The definition of "associate" will be amended, to broaden the range of eligible guarantors, chargers or purchasers to include an entity which satisfies the PPF Board of a sufficiently strong connection to an employer, independent of the existence of the contingent asset.
  • Where a Type A contingent asset (parent or group guarantee) is provided for a multi-employer scheme,employers with a lower insolvency risk than the guarantor may carry their lower risk rating through to the calculation of the scheme's insolvency rate.
  • With Type A contingent assets, schemes will be required to certify on Exchange that the guarantors could be expected to meet their full commitment under the contingent asset if called upon to do so at the date of the certificate. This change will apply to newly certified contingent assets and to recertified contingent assets.