The PPF recently announced that they will replace Dun & Bradstreet (D&B) with Experian as their assessor of the insolvency risk posed by sponsoring employers for the 2015/16 levy (i.e. affecting scores from April 2014).
The D&B rating system was not without controversy and many of our clients have spent a great deal of time challenging and correcting the data held by D&B to ensure their failure score correctly reflects the risk they pose to the PPF - the change to Experian could have significant consequences for the future PPF levies you incur.
"The results of the survey highlight that, while there is broad support for the aims and existence of the PPF, some concerns remain about the equity of the levy and the insolvency risk rating."
The PPF are currently working with Experian to develop a bespoke scoring system to be used to calculate PPF levies. We have taken this opportunity for our clients and contacts to feed into the process in order to help shape the new Experian system by running our fourth PPF levy forum survey.
The results of the survey highlight that, while there is broad support for the aims and existence of the PPF, some concerns remain about the equity of the levy and the insolvency risk rating. More tellingly however was that 90% of respondents are either worried or very concerned about the likelihood of companies successfully correcting errors or omissions in Experian’s data in time for April 2014.
As well as the transition from D&B to Experian, the survey focused on D&B failure scores and the introduction of an increased benefit cap for longer serving members.