How to provide insolvency risk information

Our insolvency risk partners calculate monthly insolvency risk scores for most scheme employers.

Providing information to Experian

Until March 2020, our partner Experian will calculate your insolvency score by using data you’ve provided on The Pensions Regulator's Exchange system.

They do this by identifying your scheme’s employers, along with those employer’s accounts, which have been filed at Companies House or specified overseas registries.

If your scheme employer does not file with these registries or other permitted sources, you can voluntarily submit data.

How we collect credit ratings

We use three selected rating agencies – Standard and Poor’s (S&P), Moody’s and Fitch.

Some financial services businesses, which don’t have a credit rating, are scored using the S&P credit model.  

When we collect ratings

We collect credit ratings information on the first working day of the month, reflecting the position at the end of the previous month.

This is used to calculate the score at the end of the month in which the information is collected.

We give Experian the credit ratings information and scores are updated by the end of the following month.

Experian certificates

In limited circumstances, a scheme or employer can provide information to Experian that allows them to calculate a more appropriate score. This information includes:

Mortgage exclusion certificates

Three scorecards include a mortgage age variable that uses charge information from Companies House.

In limited circumstances, information about certain types of charges can be provided to Experian and these are disregarded when this part of the score is calculated.

FRS 101/102

If the calculation of a change variable - measuring the change in a data item over time - would otherwise rely on data at two different times on different accounting bases, Experian may accept certificates and adjust the calculation. They must be provided by 31 March.

Employee number information

Three of the scorecards include variables that use employee numbers.

There are employers who report a Full-Time Equivalent (FTE) number in their accounts, or whose auditor signs a written statement confirming they don’t – and aren’t required to – report employee numbers

If the information is received and accepted by Experian by the end of March, they’ll backdate the revised calculation to the date when the most recent accounts were filed.

Change from consolidated to non-consolidated accounts

Where there are change variables, and where both types of accounts are recording an identical value for the past year (N-3) because any subsidiary companies consolidated are dormant, schemes can notify Experian by 31 March.

If the information is accepted, Experian will override any ‘unknown’ scores previously calculated.

Where it's clear in the relevant accounts that the status of any subsidiaries is dormant and that the variable values are identical on a consolidated or non-consolidated basis, the employer can notify Experian, enclosing suitably marked up accounts.

Where it's not clear, the employer’s auditor will need to provide confirmation of these requirements.