The PPF policy statement can be found here
Following its November 2009 consultation, the PPF has published a statement confirming its policy on measuring insolvency risk for the 2011/12 levy. Schemes and employers should act quickly before the 30 and 31 March 2010 deadlines.
The policy statement confirms that for the 2011/12 levy year, the PPF will adopt new policies, including:
- A new updated probability of insolvency table.
- Industry sector and geographical information: for the purpose of calculating the failure score Dun & Bradstreet (D&B) will require employers to provide evidence of a change of industry sector or main trading address.
- “Nationwide” location category: D&B will introduce this new category to assess more accurately the overall insolvency risk of employers with branches in three or more UK regions, rather than focusing the rating on the location of their main trading premises.
- Type B contingent assets: PPF-compliant Type B contingent assets will no longer be treated as a charge against the company which weakens the security of the employer and worsens its failure score. Those with Type B arrangements should check with D&B before 31 March 2010 to ensure that the asset has been disregarded.
- Parental risk: When assessing the failure score of a subsidiary whose parent company is at substantial risk of failure, the subsidiary’s score will be limited to (at best) the score of the parent. This override will apply to failure scores set by D&B on 31 March 2010. Again, any employer who thinks this may affect their failure score, and so their risk-based levy, should take immediate remedial action.
The measurement date for underfunding and for insolvency risk is 31 March 2010. Relevant information must be submitted by:
- 5 p.m. on 30 March 2010 for providing information and evidence to D&B to be taken into account in sponsoring employers’ failure scores.
- 5 p.m. on 31 March 2010 for updating Exchange with levy-related information. Employers and schemes wishing to take advantage of any of the changes should act quickly to submit relevant evidence to D&B by 30 March 2010.