28/02/08 Minimising PPF LEVY
28 February 2008
You have probably received briefings from your pension consultants about changes to how the risk based levy payable to the PPF will be calculated for the 2008/2009 levy year, with action points (such as making sure the scheme return is entirely accurate, and seeking to improve the employer’s D & B failure score) highlighted.
Another approach is to put in place a contingent asset which would be recognised by the PPF in determining the levy, such as a guarantee, charge over land or cash deposit, or indeed a bank guarantee. For contingent assets to count towards the 2008/2009 levy, the appropriate documentation, legal opinion and certification to the PPF must be completed and filed by 31 March 2008. Clients who already have a contingent asset in place and recognised by the PPF need to have that asset recertified, again by 31 March 2008.
We are assisting a number of clients with this process, and if you are considering using a contingent asset and to have that count for levy purposes, we would urge you to get in touch as soon as possible given the time constraints.
For more information please contact any of our Pensions team or;