Talking Head: The Pension Protection Fund's Chris Collins shares how the PPF's invoicing has gone since the new insolvency risk model was introduced, and what else is in the pipeline.
The current year, for which we are now invoicing, saw a change in our approach. The invoices that we have issued in the past two months have been the first that reflect the move to Experian as our insolvency risk provider, together with other changes for the second triennium.
That has meant undertaking two big strands of work, one to ensure all our stakeholders understand what the transition to Experian means, and the second has been the work going on behind the scenes to develop and test the new invoicing system.
Naturally we have been interested to see how invoicing based on our new insolvency risk model is landing with stakeholders.
It is encouraging to see lower levels of appeals than usually seen in an average year, despite the degree of change
To assess this, we look at the number of appeals as well as the volume of engagement directly with us – which invoicing often generates. So far, it is encouraging to see lower levels of appeals than usually seen in an average year, despite the degree of change.
We are also receiving positive feedback from key stakeholders – along of course with points on what could work better.
The response we have seen is, in part, a result of the work done in earlier months to explain the model, but perhaps even more importantly of the radically greater transparency of scoring possible with our new model.
Stakeholders have been able to engage with both how they are scored, and the data on which it is based, far more easily than ever before using platforms such as the Pension Protection Score Portal.
While it is still early days, we have seen some scores improve as people log on to the system to update the information Experian holds or provide additional information.
More changes to come
Our levy estimate for 2016-17 is £615m, £20m lower than the 2015-16 estimate of £635m. The reduction reflects a number of scenarios including the improvements in the Experian scores that scheme employers and guarantors are receiving, offset by a deterioration in scheme funding since we made last year’s estimate.
The changes we proposed in the 2016-17 levy consultation document focus on our efforts to reduce burdens on schemes and to improve practical elements of the rules.
We are, for example, seeking to simplify the process for recertifying mortgage exclusions and asset-backed contributions.
We will continue to monitor the performance of the model, along with other aspects of the levy, to ensure the rules work in practice and with a view to assessing the evidence for any change at the end of the current triennium.
Chris Collins is chief policy adviser at the PPF
