The Pension Protection Fund (PPF) is set to go live with insolvency risk scores calculated by Dun & Bradstreet (D&B) next month for 2021/22 levy invoices.
Respondents to the PPF's recent levy consultation welcomed the introduction of the new services developed with D&B with some small scale improvements. Levy payers have been urged to continue to use the new portal to monitor scores and raise queries with D&B.
This comes after the PPF replaced Experian as its insolvency risk provider to D&B as part of its triennial review in December and published its plans for updated insolvency risk services and opened a consultation on its approach to insolvency risk measurement from 2021. This initial consultation focused on the PPF's decision to reappoint D&B as its insolvency risk provider.
Consultation respondents were largely supportive of the PPF's proposals on the insolvency risk model, including D&B's approach to the construction of financial variables and corporate linkages.
The proposals to maintain the current model subject to some improvements to address levy payer concerns were also largely welcomed.
Similar to an insurance premium, the amount of levy schemes pay is currently primarily based on the risk of its sponsoring employer becoming insolvent.
The PPF revealed the methodology used in live scoring will be broadly as consulted on.
D&B has calculated insolvency risk scores for the vast majority of employers and the proportion of employers that have the same levy band as with Experian has significantly increased as a result.
PPF executive director and general counsel David Taylor said: "We are extremely grateful to our stakeholders who have taken time to give us feedback and to the members of our industry steering group and SME forum for helping us to reach this point. The services we now offer are much enhanced as a result of their input."
The first invoices using D&B's insolvency risk scores are due to be issued in Autumn 2021.
Last month, the Association of Consulting Actuaries said the effects of any changes will "not be immediately apparent" to levy payers.
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