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.
The primary purpose of requiring Block Transfers to be certified is to ensure that schemes that had transferred all their liabilities are not charged a levy, and that the liabilities are correctly recorded at the receiving scheme so that their levy takes account of them. In so doing, it will ensure that the liabilities did not disappear from the PPF universe and have an adverse affect of the overall levy.
Each year the Levy Rules (also referred to as the Determination) specify how a Block Transfer should be handled, details the time frames in which things must be done and specifies the consequences of failure to comply. The Rules for 2013/14 require schemes to report the full details of any Full Transfer (valuation etc.) that impact the period ending the end of March 2013 by the end of June each year and specify a disincentive for schemes that fail to report.
For the 2013/14 levy year, we only recognise full transfers - where all members of a scheme transfer.
For details of how to complete block transfer certificates for the 2013/14 levy year, please refer to the Board’s levy Determination, the Transfers Appendix, and the Guidance for Calculating and Certifying Block Transfers.
Deadlines for certification for the 2013/14 levy
5pm on 28 June 2013 for final certification of full block transfers that have taken place before 1 April 2013.