Important deadlines for reducing a defined benefit scheme’s 2013/14 Pension Protection Fund (PPF) levy are fast approaching. Click here for further details of the PPF levy rules for the 2013/14 levy year.
Action points for trustees and employers
There may still be time for trustees and employers to take action to reduce their scheme’s 2013/14 PPF levy. However, they will need to act quickly especially where contingent assets are being put in place for the first time as well as where contingent assets are being re-certified. Where they have not already taken action on contingent assets, trustees and employers should speak to their usual Eversheds adviser as soon as possible for advice.
The relevant deadlines for putting in place contingent assets to reduce the PPF levy and/or take other actions to minimise the levy are:
- Insolvency risk is measured using the average annual failure score assessed on the last working day of the month between 30 April 2012 and 28 March 2013. Deadline for submission of scheme data (including section 179 valuations) for use in levy calculations: by 5pm on 28 March 2013, through Exchange.
- Reference period for funding smoothing: five years to 31 March 2012.
- Deadline for putting in place contingent assets and submitting certificates: 5pm on 28 March 2013.
- Deadline for re-certifying existing contingent assets: 5pm on 28 March 2013.
- Deadline for certifying deficit-reduction contributions made on or before 31 March 2013: 5pm on 30 April 2013.
- Deadline for final certification of full block transfers that have taken place up to and including 31 March 2013: 5pm on 28 June 2013.
- Invoicing starts autumn 2013.