Contingent assets and the Pension Protection Fund

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Contingent assets and the Pension Protection Fund
  • What is a contingent asset?
  • PPF framework for the recognition of contingent assets
  • Contingent asset documentation for levy year 2021/22
  • Changes made in 2021/22
  • Required form of contingent asset agreement
  • What amendments to the standard forms are permitted?
  • What version of the standard form should be used?
  • Legal capacity and domicile of the guarantor, chargor, account bank, custodian or Counterparty
  • Corporate benefit
  • More...

Contingent assets and the Pension Protection Fund

CORONAVIRUS (COVID-19) UPDATE: As a result of coronavirus, the PPF decided to make certain changes to its policies. For instance, the PPF will accept e-signatures and other forms of confirmation for PPF-specific documents (eg officer’s certificates), but will not paper accept s120 notifications.

On 22 April 2020 the PPF issued guidance to members on how to avoid fraudulent scams in light of the widespread increase in the number of fraudulent calls, letters, phishing emails and smishing (text) attacks during the coronavirus pandemic. The PPF wants to reassure members that any correspondence from it is genuine and has therefore provided some tips on how to spot fraudulent correspondence.

On 28 April 2020 the PPF sought to reassure PPF levy payers that COVID-19 would have a minimal impact on the amount of levy it expected to charge in 2020/21, explaining that the rules used to calculate the levy were fixed prior to the onset of the COVID-19 pandemic and the information used to calculate these invoices were largely collected before the economic impact of COVID–19 began to take effect.

Moreover, to help businesses and schemes pay their 2020/21 levy invoices, the PPF put in place an option which allows up to 90 days to pay the levy without incurring an interest charge. The PPF also introduced the option of electronic levy

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