7 days
7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.
In this 7 Days:
- DWP publishes triennial review of pensions bodies
- Chair of TPAS to stand down in September 2014
- PPF explains its approach to restructuring and insolvency
- PPF provides update on Insolvency Risk Provider – 9 January 2013
DWP publishes triennial review of pensions bodies
Following a call for evidence, on 9 January 2014 the government published itstriennial review of the 4 pensions bodies. The review concludes that TPR, TPAS, the Pensions Ombudsman and the PPF Ombudsman should all continue in their current form. The government is satisfied that the organisations continue to be fit for purpose and are delivering what they were set up to do effectively – essential to maintaining consumer confidence in pensions.
However, “it does not follow that this will necessarily remain the case for the indefinite future” and a longer term review is recommended.
Chair of TPAS to stand down in September 2014
On 7 January 2014, the DWP announced that Partha Dasgupta, current chair of TPAS will stand down from the role at the end of September 2014.
A recruitment exercise will be launched for a successor later this month.
PPF explains its approach to restructuring and insolvency
Since the PPF opened its doors for business in 2005 it has been involved in restructuring or rescue deals affecting employers which otherwise face certain insolvency. The negotiations that take place to agree these deals are, by their very nature, complex and confidential because of commercial sensitivities.
Recent high-profile cases such as Dawson International, Jessops and UK Coal have meant that the PPF’s role in this type of agreement has received greater scrutiny and analysis which, the PPF states, “has often been inaccurate and misleading”.
In this factsheet, the PPF aims to explain why it enters into these agreements and summarises the principles it uses to make its decisions.
PPF provides update on Insolvency Risk Provider – 9 January 2013
In July 2013 the PPF announced that it had appointed Experian as its new insolvency risk provider, replacing D&B.
At that time, the PPF said that it would not use Experian insolvency scores until the 2015/16 levy year. In the meantime, however, it intended to work with Experian to develop a new model for calculating insolvency risk and then evaluate it alongside the company’s standard product. It also committed to involving an industry steering group in that work.
Unfortunately, as development work has taken longer than anticipated, on 9 January 2014 the PPF announced that levy payers will not be able to see their new scores in early 2014, as originally intended.
In the meantime, the PPF will continue working with Experian and the industry steering group to ensure the model meets its tests of being suitably predictive, transparent for levy payers and a better fit for the PPF universe.
The PPF will continue to provide updates on progress as necessary and will consult with all interested parties once it is ready to set out the various options.
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