Pensions - Articles - PPF to work with Experian as new Insolvency Risk Provider


 The Pension Protection Fund (PPF) has announced that it will be working with global information services company, Experian, as its insolvency risk provider. Insolvency risk, or failure, scores are one of the three main factors, alongside investment and underfunding risk, needed to calculate the individual pension protection levies paid by eligible pension schemes.

 For the past eight years, the PPF has been using Dun & Bradstreet (D&B) to provide this service but it decided to change supplier following a competitive tendering process.

 There will be a handover period between the two companies which means the PPF will not be using Experian scores to calculate levies until the 2015/16 levy year. During this period, the PPF will continue to use D&B to calculate the levy and the current methodology remains unchanged.

 In the meantime, Experian will be working alongside the PPF, with input from stakeholders, to develop a bespoke model for calculating insolvency risk. This bespoke model will focus on measuring insolvency risk for the PPF's universe of sponsoring employers, supported by Experian's detailed understanding of the UK's economic environment and its impact on commercial solvency.

 The intention is that schemes and sponsoring employers will have access to the new insolvency risk scores from early 2014.

 PPF Chief Operating Officer, David Heslop, said: "Assessing the risk of an employer going bust, which could mean its pension scheme entering the PPF, is at the heart of how we calculate individual levies and how we assess our overall risk. So, it is essential that we get the most suitable supplier to meet our future needs."

 The PPF will now be working with both businesses to make sure there is a seamless transfer of responsibilities. 

Back to Index


Similar News to this Story

PPF marks 20 years of protection in its Annual Report
The Pension Protection Fund (PPF) has published its 2024/25 Annual Report and Accounts, marking its 20th anniversary with a year of strong financial p
DC pensions continue to back Net Zero despite ESG backlash
Barnett Waddingham’s latest DC Sustainability Report finds a 34% increase in allocations to funds with a climate target in the growth stage since orig
Chancellors focus on guided retirement for pensions savers
Ahead of the Mansion House speech to be delivered by UK Chancellor Rachel Reeves on the evening of 15 July, Glyn Bradley, Chair of Pensions Board at t

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.