Help us reduce your Insurance Levies
Issued: 12 November 2007
The Pension Protection Fund (PPF) is an insurance scheme providing compensation to members when their employer becomes insolvent and their defined benefit pension scheme doesn’t have enough money to pay out their benefits.
The PPF is paid for by levies charged to pension schemes that are eligible to benefit from it. The levy calculation takes into account how much compensation the PPF might have to pay out if the scheme fails, and the risk of scheme failure. To assess this risk, the PPF has engaged Dun & Bradstreet (D&B), a worldwide credit scoring agency, which uses information from Companies House to allocate a ‘failure score’ to each participating employer connected with a scheme.
The PPF is proposing that levy calculations for 2008/9 and 2009/10 should be based on employer failure scores at the end of March 2008. It is crucial that D&B has current and accurate financial information about our clients by March 2008, otherwise there is a real risk that schemes will pay inflated levies.
Help us to help you!
We need to take action to ensure our clients’ PPF levies are as low as possible. We believe the starting point is for employers to submit their audited accounts annually to D&B.
We would like to encourage all employers participating in the Social Housing Pension Scheme to send D&B a copy of their most recent audited accounts as soon as possible. Registered Social Landlords (RSL's) registered with the Housing Corporation do not need to submit their accounts to D&B as the Trust are seeking to obtain RSL accounts directly from the Housing Corporation.
Please click on the link on the right hand box to submit your most recent audited accounts to D&B. D&B can help you establish what action could be taken to improve your failure score. D&B has set up a PPF helpline on 0870 850 6209.