The results of Barnett Waddingham’s fifth PPF levy forum survey show that the industry broadly supports the PPF’s decision to switch to using a bespoke model developed with Experian as the means for assessing insolvency risk.
"The scorecards need to be revisited to see if there is a case for revision or additional scorecards. "
However, comments made by respondents emphasise the importance of engaging with Experian to ensure that the data used in calculating company scores is accurate. Respondents also commented on the lack of flexibility in the treatment of mortgages for scoring purposes.
Despite these concerns, our survey once again showed that support for the PPF as a means of providing additional security for members of occupational pension schemes remains high at 91%.
The main focus of the 2015 PPF levy survey was the transition from Dun & Bradstreet to a bespoke insolvency risk model with Experian. The survey also considered areas such as the change to the contingent asset certification process, mortgage exclusions and the discount applied to Last Man Standing schemes. A breakdown of answers not depicted in the following pages is shown in the survey results at the end of this research document.
The results from the survey and the feedback from our clients and contacts will be shared with the PPF in the hope that it can help shape the way in which future levies are determined.
However, a significant increase in the levies being charged to many solvent employers is hitting them hard. Many consider it unfair to place the pension burden of failed employers onto those already struggling with their own schemes.
This site provides employers and trustees with a guide to the workings of the PPF and the way levies are assessed, offering practical advice on how to manage your scheme’s PPF levy. The site also allows you to share your views on the PPF and issues surrounding levies.Read more