The PPF provides guidance to actuaries on carrying out section 179 and section 143 valuations. Please note that following consultation, the assumptions guidance documents were updated on 8 October 2009. View the consultation response here.

What is the guidance for?

Section 179 guidance
For undertaking a valuation to determine the level of a scheme’s funding position in accordance with section 179 of the Pensions Act 2004. The results of the valuation are combined, with the results of the s179 valuations for all other schemes that are eligible for the PPF, to assess the general level of scheme underfunding and used to set the levy quantum and scaling factor. The s179 results for an individual scheme are also used to calculate the pension protection levy for that scheme.

Section 143 guidance
For undertaking a valuation to determine the level of a scheme’s funding in accordance with section 143 of the Pensions Act 2004. The purpose of the valuation is to determine whether the Board of the Pension Protection Fund should take over the responsibility for a particular scheme.

We recently held a workshop for actuaries on preparing section 143 valuations. The slides from the workshop are available here.

Memorandum of Understanding
The Board of the Pension Protection Fund and the Actuarial Profession share a common interest in the quality of S179 and S143 valuations. They are concerned that these statutory valuations are both prepared in accordance with the relevant legislation and guidance, and that this is done in a timely and professional manner.  They have signed a Memorandum Of Understanding that enables them to exchange information relevant to ensuring that these professional standards are maintained.

Guidance for undertaking the valuation in accordance with Section 179 of the Pensions Act 2004  (version G5, May 2009)

Guidance on assumptions to use when undertaking a valuation in accordance with Section 179 of the Pensions Act 2004 (version A5,  October 2009)

You can also view guidance that was valid for previous periods.

Certificate required under section 179 valuation
This certificate should form part of the scheme actuary’s s179 valuation report. The s179 certificate should be given to the scheme’s trustees, it should not be sent directly to the PPF. Information contained in the section 179 certificate should be submitted to the PPF as part of the annual scheme return via the Pension Regulator’s system Exchange. The PPF Board will ignore any s179 information submitted in error direct to the PPF and will not take it into account in levy calculations.

It is possible to update the s179 valuation pages of Exchange at anytime. The PPF will use whatever information is on Exchange as at 5pm on 31 March 2010 in the calculation of the 2011/12 levy.

For further information on s179 valuations, please see the s179 valuation FAQs in our FAQ database.

Guidance for undertaking the valuation in accordance with Section 143 of the Pensions Act 2004 (version H4, June 2010)

Additional information for carrying out a Section 143 valuation

Guidance on assumptions to use when undertaking a valuation in accordance with Section 143 of the Pensions Act 2004 (version B4, October 2009)

Certificate for the Purposes of section 143 of the Pensions Act 2004 (as set out in our guidance, for inclusion in the s143 valuation report)

Data and Liability Information spreadsheet (Section 143 valuations) (please provide an electronic Excel version of the completed data and liability spreadsheet when submitting s143 valuations)

Data and Liability Information spreadsheet (Section 143 valuations) EXAMPLE

You can also view guidance that was valid for previous periods.

For further information on s143 valuations, please see the s143 valuation FAQs in our FAQ database.

For further information please contact the Stakeholder Support Team on 0845 600 2541 or information@ppf.gsi.gov.uk.