As well as certifying your contingent assets via The Pensions Regulator's Exchange system, you’ll also need to send hard copy documents by 5 p.m. on the last working day of March.
Please send these hard copies to:
Director of Legal, Compliance and Ethics Re: Contingent Assets
The Board of the Pension Protection Fund
12 Dingwall Road
If we’ve previously recognised contingent assets in your levy calculation, and you want to obtain levy credit in the coming year, you still need to recertify them online every year.
Guarantees: when to get a guarantor strength report?
If you’re certifying a contingent asset that will reduce your scheme’s levy by £100,000 or more, and it’s accepted, you’ll need to obtain and submit a guarantor strength report from a professional valuer.
If you’re unsure of how the asset will affect your levy invoice, we recommend that you commission a report just in case.
How to recertify existing contingent assets
If we’ve previously recognised contingent assets in your levy calculation, you’ll still need to recertify them on Exchange every year; but there’s no need to provide all of the hard-copy documents. If you need to re-execute your contingent asset please see below.
However, if the asset is a guarantee that will reduce your levy by £100,000 or more then you’ll need to provide a guarantor strength report every year.
Do you have to recertify contingent assets every year?
You don’t have to recertify your contingent assets, for example if you don’t believe there’ll be a levy benefit next year.
You can re-certify in the future, without all of the additional requirements of a new certification, if it’s less than five years since you last certified them.
What's changing for 2019/20
For contingent asset agreements entered into or re-executed on or after 18 January 2018 you will need to use our new standard form agreements. These can be found under 'Related forms and guidance' on our current levy rules page.
We have confirmed in our 2019/20 consultation document our intention that to receive levy benefit in 2019/20 we will require schemes with Type A and B contingent assets, that include a fixed cap, to be re-executed on the new standard forms by the end of March 2019.
Watch our video below on when and how you can re-execute agreements: