As reported in November’s Pensions Express, a scheme’s Pension Protection Fund (PPF) liability is estimated by undertaking a section 179 valuation.
This test will normally form part of the triennial actuarial valuation process. However, if a scheme has yet to complete its first actuarial valuation under the new scheme funding basis, it is mandatory for an initial section 179 valuation to be submitted to the PPF by 31 March 2008.
The PPF has issued a reminder stating that all schemes registered prior to 6 April 2007 have a statutory obligation to submit an initial section 179 valuation by this deadline, or within 15 months of the effective date of the first scheme funding valuation, if earlier.
The Pensions Regulator is now collecting section 179 valuation information on behalf of the PPF via their Scheme Return. If the deadline for submission is prior to the date that schemes are able to submit their annual Scheme Return to the Pensions Regulator, then it is still permissible to submit the information on a section 179 valuation certificate to the PPF.
If this deadline is missed, the Pensions Regulator may use its statutory powers. In addition, if a section 179 valuation is not submitted, it is proposed that the asset value used to determine the levy will be notionally reduced, resulting in a higher overall levy for the scheme concerned.
Note: For further information regarding this deadline, please contact your scheme actuary, consultant or client manager.
Government response to the Deregulatory Review
As part of Capita Hartshead’s ongoing focus on maintaining a strong control and compliance environment throughout the organisation, we are pleased to announce that our first AAF 01/06 Assurance Report has been finalised.
JP Morgan Fleming Claverhouse Investment Trust plc
HM Revenue & Customs’ (HMRC) latest Pensions Tax Simplification Newsletter includes information on mandatory e-filing, which was implemented with effect from 16 October 2007. Details of where the forms can be found are also given, along with additional guidance on scheme processes.
The Pension Protection Fund (PPF) has consulted on the future development of the annual levy payable by eligible defined benefit schemes. The consultation ran from 8 August to 3 October 2007, and focused on responding to feedback received from the industry.
The Chancellor, Alistair Darling, delivered his first Pre-Budget Report on 9 October 2007. The issues announced that are relevant to the pensions industry include: