Block Transfers 


A block transfer is the PPF’s terminology for where the liabilities for more than one member have been transferred between schemes. Block transfer certificates provide us with the estimated section 179 valuation positions of the schemes involved in a transfer of liabilities. We may use this valuation information in lieu of the formal section 179 valuation information to calculate the levy.

We recognise two categories of block transfers for levy year 2011/12. Broadly speaking, 

  • a full transfer is where a scheme has transferred members to one or more PPF-eligible schemes, and there are fewer than 2 members left in a scheme as at 1 April 2011; and   
  • a qualifying transfer is one which is not a full transfer, but where a scheme has transferred £1.5million, or more than 5 per cent of the assets of either the transferring or receiving scheme. Such transfers can be to PPF-ineligible schemes or insurance companies.

It is important that schemes check the levy rules carefully to make sure they categorise their transfer correctly. Block transfers can be certified on Exchange for levy purposes, but there are different rules and deadlines for each category of block transfer.

For details of how to complete block transfer certificates for the 2011/12 levy year, please refer to the Board’s levy Determination, the Transfers Appendix, and the Guidance for Calculating and Certifying Block Transfers.

When a full transfer takes place, we expect this to be certified to us so that those liabilities can be accounted for in the levy calculation.

If schemes fail to submit (or submit late) certificates for a full transfer, the levy for the receiving scheme will be calculated by applying the Poor Data Methodology as set out in the Transfers Appendix to the Determination unless the PPF is satisfied that the trustees of the receiving scheme have made all reasonable efforts to ensure that the information was submitted. 
 

Deadlines for certification

For the 2011/12 levy

  • 5pm on 30 June 2011 for full transfers
  • 5pm on 30 June 2010 for qualifying transfers

 

 

 

 

 

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