UK - Less than half of companies have moved to reduce their risk rating and levy, while 45% simply did not know what they planned to do about it, a survey by pension consultants Entegria has found.
Pat Wynne, director at Entegria, said the results of the survey on pensions managers showed the annual risk levy for the Pension Protection Fund (PPF) could be a significant burden on companies, but added: It is a tax that can be mitigated through undertaking specific action.
According to Wynne, companies needed to seriously look at their D&B scores (a risk of failure score calculated by Dunn and Bradstreet) to improve their credit assessment ratings, and also look at other actions to reduce the variable part of the levy.
“For example, the simple action of removing county court judgements can significantly reduce credit ratings and markedly reduce the annual levy, said Wynne.
By Damian Clarkson
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.