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Assess & Pay pilot project proves a success
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Panel set up to undertake actuarial valuations
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New approach will reduce the time that schemes are in assessment
The Pension Protection Fund (PPF) has set up a panel of actuarial firms to help carry out Section 143 (s143) valuations for pension schemes in assessment.
Five actuarial firms have been selected to work with the PPF to help get other schemes, through the PPF assessment period more quickly. These firms are: Barnett Waddingham; Jardine Lloyd Thompson; Punter Southall; Spence and Partners and Xafinity Consulting.
This decision comes after the successful completion of a pilot project earlier on in the year, that saw 50 schemes transfer into the PPF with the enlisted help of Punter Southall - the firm selected to undertake the trial.
Phillip Beecroft, Head of PPF Operations explains: "We currently have more than 200,000 members and 336 schemes in assessment. Our members have told us they wanted certainty sooner, the trustees and their advisers told us that they wanted a more pragmatic approach during the assessment period and our levy payers wanted to see a more efficient programme to help reduce the cost of the levy.
"Our pilot project has demonstrated that by using a dedicated actuary, with specific knowledge and expertise to carry out underfunded s143 valuations, we can save time, reduce cost and improve the quality of s143s. That is why we have decided to roll this out to other schemes in assessment."
The PPF is currently assessing its existing portfolio and will be selecting those schemes where a panellist will be appointed. Currently, the panel will only conduct valuations for schemes that are both underfunded and standard. For all other schemes such as marginal, over-funded or high-profile cases the scheme actuary will still be expected to carry out an s143 valuation.
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