2013/14 Levy Determination 


On 17 December 2012,  the PPF published the final determination for the 2013/14 levy and associated documents. This comprises of the following:

The 2013/14 Levy Policy Statement

Determination under Section 175(5) of the Pensions Act 2004 in respect of the financial year 1 April 2013 – 31 March 2014
Contingent Asset Appendix    
DRC Appendix  
Insolvency Risk Appendix
Investment Risk Appendix 
MFR Conversion Appendix    
Transfers Appendix  
Transformation Appendix    

Levy Practice Guidance
Guidance on Bespoke Investment Risk Calculation
Guidance on Contingent Assets 
Guidance on Block Transfers 

The standard form contingent asset agreements to use for 2013/14 are the same as for last year, and are set out below:

Form of Type A contingent asset - group company guarantee
Form of Type B(i) contingent asset - security over cash
Form of Type B(ii)EW contingent asset - security over real estate (England and Wales)
Forrm of Type B(ii)S contingent asset - security over real estate (Scotland)
Form of Type B(ii)NI contingent asset - security over real estate (Northern Ireland)
Form of Type B(iii) contingent asset - security over securities
Form of Type C(i) contingent asset - letter of credit/bank guarantee (evergreen)
Form of Type C(ii) contingent asset - letter of credit/bank guarantee (reducing balance)

 

 

 

On 25 September 2012, the PPF published the consultation and draft determination for the 2013/14 levy. This comprises the following documents:

The 2013/14 Pension Protection Levy Consultation Document

Draft Determination under Section 175(5) of the Pensions Act 2004 in respect of the financial year 1 April 2013 – 31 March 2014
Draft Contingent Asset Appendix    
Draft DRC Appendix  
Draft Insolvency Risk Appendix
Draft Investment Risk Appendix 
Draft MFR Conversion Appendix    
Draft Transfers Appendix  
Draft Transformation Appendix    

 

1 November 2012 - Since the publication of our Consultation Document we have received updated advice from D&B concerning the correct UK Failure Scores that local Failure Scores in Switzerland (and Liechtenstein) should be converted to. We intend to include these revised conversion scores in our finalised Levy Rules for 2013/14. As best we can tell, only a handful of schemes are likely to be affected, but we are contacting all schemes with Swiss employers or guarantors (none in Liechtenstein have been identified) to ensure they are aware of the change and have an opportunity to comment.  For more information, please view this document.

1 October 2012 - The Consultation Document and Contingent Asset Appendix have been updated to correct some inaccurate cross-references (at paragraph 3.4.8 of the Consultation Document and in a number of places in the Contingent Asset Guidance).