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Pension Protection Fund update
by Ian Neale 28/03/2007    Printer-friendly version of this page

Practitioners should note that this Friday (30 March, 5pm) is the deadline for submission of the 2007/08 versions of the following voluntary certificates:

  • The Section 179 Valuation Certificate
  • Contingent Asset Certificates

Schemes re-certifying existing contingent asset arrangements must submit those certificates to the Board by the end of this week too.

In addition, the deadline for the Actuarial Certificate of Deficit Reduction Contributions is barely a week away (5pm on Thursday 5 April 2007).

Each of these certificates is available on the PPF website.

Yesterday the PPF announced the transfer of a further six pension schemes to the Pension Protection Fund (PPF), with the first payments due to be made on 30 March. The successful entrants are

1. MG Rover, the Midlands-based car manufacturer. The scheme - the largest so far to transfer to the PPF - has 6,228 members with 1,267 immediately receiving PPF payments.

2. Solid State Logic, an Oxfordshire-based film, audio and video technology specialist. The scheme has 167 members with five immediately receiving PPF payments.

3. Fiege Merlin, a supplier of vans and tractors. The scheme has 127 members with 27 immediately receiving PPF payments.

4. Bristol Community Sport, a Bristol-based operator of swimming pools and sports centres. The scheme has 151 members with five immediately receiving PPF payments.

5. Beaujersey, a Leicester-based producer of knitted and crocheted fabrics. The scheme has 88 members with 21 immediately receiving PPF payments.

6. Motor Industry Pension Plan - Pearce Motors Section, a retail motor trader based in North-East England. The scheme has 33 members with 5 immediately receiving PPF payments.

A further four schemes have successfully completed the PPF assessment period but have not needed to transfer:

  • UPSU Trading Limited section of the Student Unions Superannuation Scheme
  • Accordis section of the Akzo Nobel (CPS) Pension Scheme
  • Cambridge United Football Club section of The Football League Ltd Pension and Life Assurance Scheme
  • MG Rover Contract Related Pension Scheme.

Meanwhile, the mini-mountain of PPF legislation continues to grow like Paricutin, with another two sets of regulations laid on 16 March and coming into force on 6 April 2007:

  • The Pension Protection Fund (Contributions Equivalent Premium) Regulations 2007 (SI 2007/834) (9 pages) and
  • The Pension Protection Fund (Closed Schemes) Regulations 2007 (SI 2007/865) (15 pages).

We reported last August on a DWP consultation [PDF] on drafts of these regs. Consultation ended on 26 September 2006 and 24 October 2006 respectively. The DWP has now published the outcome (CEP [PDF] and Closed Schemes [PDF]), noting that several respondents had raised minor drafting points aimed at either ensuring the correct relationship between existing provisions, or providing greater clarity. These comments were accepted and incorporated into the regulations.

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