Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • January 2014
01

PPF delays publication of new risk score model

Open-access content Monday 13th January 2014 — updated 5.13pm, Wednesday 29th April 2020

The Pension Protection Fund has delayed publication of its new model for calculating sponsor’ insolvency risk scores, which play a major role in determining the levy defined benefit schemes pay in to the PPF

These scores are currently provided by Dun & Bradstreet but the fund is switching to Experian to calculate the scores for the 2015/16 levy.

The PPF said last week that it had intended to make an announcement about the new model by the end of 2013, but development work had 'taken longer than originally anticipated'. This means that levy payers will not be able to see their new scores in early 2014 as was originally intended.

'We are making steady progress with Experian but want to make sure that any new model we consult on is robust and fit-for-purpose,' the PPF said.

It added that it would continue working with Experian and the industry steering group to ensure the model meets its test of being 'suitably predictive, transparent for levy payers and a better fit for the PPF universe'. 

Despite the fund not providing a time when it would publish the new model for consultation, it said it was 'committed to giving levy payers as much time as practically possible to understand any new methodology before it is used in levy calculations'.

Nick Griggs, a partner at actuaries Barnett Waddingham, said it was important that the replacement for the Dun & Bradstreet scores were a better fit for the requirements of the PPF levy calculation.

'So whilst these delays are not ideal it is more important that the new rating system is fit for purpose,' he said. 

'The PPF appear to be aware of levy payers concerns and it is encouraging that they have indicated that extra flexibility will be offered during the transition period to allow holes in Experian's data to be rectified and presumably score corrections to be backdated if necessary.'

Joanne Shepard, senior consultant at Towers Watson, told The Actuary the delay was 'slightly frustrating'.

But she added: 'We agree that the PPF shouldn't publish prematurely and it should make sure that the model is fit for purpose before it does publish, because otherwise that is not helpful either and a waste of people's time.'

Asked when the PPF would publish the new model, Shepard said: 'Our understanding is that the fund is looking to publish in May.' 

The PPF, established in 2005, exists to provide compensation to members of defined benefit pension schemes that have become insolvent.

This article appeared in our January 2014 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Sharp rise in state pension age 'unfair on older workers'

Actuaries Buck Consultants have disagreed with the ‘dramatic’ rise in state pension age proposed by the Institute of Economic Affairs, saying changes must be balanced to protect those close to retirement.
Monday 13th January 2014
Open-access content

PPF DB pension deficits fall to £27.6bn

The aggregate deficit of the UK’s defined benefit pension schemes more than halved last month, according to figures published today by the Pension Protection Fund
Tuesday 14th January 2014
Open-access content

Popularity of ABC structures set to continue, KPMG poll finds

Asset-backed contributions for defined benefit pension schemes grew by nearly £2bn in 2013 and this rate of implementation is likely to increase in 2014, according to a KPMG survey.
Friday 10th January 2014
Open-access content

Further personal allowance hikes 'could hit pension saving'

Proposals to increase the income tax personal allowance to £12,500 could hit pension savings by taking many low-paid workers out of auto-enrolment, a report has warned today
Thursday 16th January 2014
Open-access content

Smokers' annuity rates up by more than 6%

Annuity rates for smokers shot up by 6.28% last month, according to latest figures from the Annuity Bureau’s January table
Friday 17th January 2014
Open-access content

Think-tank demands tougher action on state pension 'time bomb'

Government plans to increase state pension expenditure have been slammed by a Right-wing think-tank as ‘unaffordable’ and ‘irresponsible’
Wednesday 8th January 2014
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from January 2014

2

Severe winter weather to cost UK insurers £1.1bn, says ABI

Insurers will be hit with a £1.1bn bill following the floods and storms that hit the UK over the winter, the Association of British Insurers said today.
Thursday 13th March 2014
Open-access content

Fitch puts UK storm losses at £1.2bn

UK insurers could face losses of up to £1.2bn following the recent winter floods and storms, according to Fitch Rating, however, these are expected to be manageable.
Wednesday 5th March 2014
Open-access content

Pensions questions remain for independent Scotland, say accountants

The Scottish Government has failed to answer key questions on the impact independence would have on pensions, an accountancy body warned today.
Monday 3rd February 2014
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from 01

2

Severe winter weather to cost UK insurers £1.1bn, says ABI

Insurers will be hit with a £1.1bn bill following the floods and storms that hit the UK over the winter, the Association of British Insurers said today.
Thursday 13th March 2014
Open-access content

Fitch puts UK storm losses at £1.2bn

UK insurers could face losses of up to £1.2bn following the recent winter floods and storms, according to Fitch Rating, however, these are expected to be manageable.
Wednesday 5th March 2014
Open-access content

Pensions questions remain for independent Scotland, say accountants

The Scottish Government has failed to answer key questions on the impact independence would have on pensions, an accountancy body warned today.
Monday 3rd February 2014
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Manager - Building new team!

London (Central)
Up to £130k + Bonus
Reference
148845

Shape the Future of Credit Risk Model Development

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148843

Longevity Director

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148842
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ