The Pension Protection Fund (PPF) is considering tweaking its practices and procedures for levies, including improving its Experian model.
Speaking at the PBUK conference on June 28, general counsel David Taylor explained how the PPF was exploring several areas with its industry working group including its new triennium for 2018/19 to 2020/21 and the 2017/18 PPF levy.
This includes whether enhancements could be made to its Experian model, particularly making it more user-friendly and scoring the largest entities and those paying the largest levies.
The PPF and its working group will explore using credit ratings for larger organisations where those ratings are available.
The wider framework will also be looked at including asset contributions, contingent assets and filing of deficit contributions as well as the liability stresses.
Taylor also said the PPF is insourcing investment, beginning with its liability driven investment programme, which will involve building systems and having a recruitment drive.
Insourcing will give the lifeboat fund "greater control of its destiny" than if the services were provided by third parties, he added.
In the longer term, the PPF would revisit whether there are elements of the levy that should be developed including wehether the level of insolvency risk is correct.
The lifeboat fund's is due to consult on some of these matters later this year.
"Our overwhelming message is ‘if it ain't broke don't fix it'. We will only be amending things if there's the evidence to support that," Taylor said. "We are in the process of completing and embedding our insourcing of our member services.
"Initially when we were set up we outsourced all the processes dealing with our members to a third party, but took the decision a few years ago that when that contract was up that the time was right to bring those services in house and do it ourselves.
"It has saved us an amount of money but that wasn't the primary driver for it. The primary driver was to provide a service which would be suitable for our member now and in the future."
Taylor added the PPF had already developed the non-online side of its communications with members, which included telephone services.
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