PPF step away from new rule laying
The company which acts as the UK's safety net for company pensions, had suggested a stricter approach to the levy it imposes on employers that use “Asset Backed Contribution” structures.
Some suspect employers had included intangible assets such as trademarks and copyrights, in a bid to lower pension scheme deficits.
It also showed that in most cases these assets were being overvalued and gave employers the opportunity to hoodwink their staff.
However, to prevent companies getting away with lower levy payments, the PPF proposed in May that only ABCs backed by UK property would be recognised for the purposes of calculating the levy.
Instead on Monday, the PPF had changed their minds following information from industry stakeholders.
Explaining himself David Taylor, director of strategy and legal affairs with the PPF said: “Following discussion with the industry, we are now moving to a position where we are less concerned about underlying assets in these vehicles,”
“However, in order to be able to recognise a wider range of assets we will require more from the schemes in terms of how they certify to us the valuations on insolvency.”
This news has gone down reasonably well with the pensions industry.
The PPF announced these concessions as it confirmed that it would collect about £625m from employers in 2015-16 – about 10% than the previous year. also appeared “likely to fall further rather than rise”, the PPF said.