It’s that time of year again: the weather is wintry, despite it being nearly Spring; the New Year TV dramas have finished with nothing to replace them; and we are into the final few days of implementing Pension Protection Fund (PPF) levy saving measures. Are you on track to meet the PPF’s deadlines?
Trustees that have the benefit of a contingent asset guarantee should check with their actuarial advisers whether the levy saving could generate £100,000 or more. If so, the trustees will need to obtain a guarantor strength report, which must be submitted in hard copy to the PPF by 5pm on 29 March 2018. The trustees must obtain this report before certifying or re-certifying a contingent asset guarantee. Don’t leave it too late. The report is a new document, which will require some thought. Some trustees may wish to obtain a guarantor strength report whether or not the amount of levy saving requires it. This is because it is likely to provide more certainty as to whether or not the PPF will accept a guarantee as a contingent asset.