Asset-backed contributions (ABCs)

Scheme Return information

We are asking schemes to fill in the relevant details regarding their current ABCs. However please also note that since levy year 2015/16, the PPF has been collecting additional information about ABC arrangements to feed into the levy calculation – more details can be found on the PPF website:

https://www.ppf.co.uk/levy-payers/reduce-the-levy/asset-backed-contributions

Please note that the ABC information required for PPF levy calculation purposes will need to be captured and submitted using a form available from the PPF. Without completion of the PPF form, the PPF may take some information from Exchange and/or may make conservative assumptions. This would mean that schemes may not gain appropriate credit for the ABC (or the coupons paid from it) in their levy calculation and the deduction the PPF makes from the scheme assets to calculate the levy may not be fully accurate.

Current ABCs

If your pension scheme has entered into an asset-backed contribution arrangement (‘ABC’) the Regulator is asking each scheme to input details relating to the ABC.

If the 'Asset-backed contributions (ABCs)' percentage is greater than zero within the 'Other types of assets' section of the 'Asset Breakdown & Investment Risk' category on the scheme return, then it is assumed that the scheme has an ABC. In which case, the Regulator will need you to add details of that ABC arrangement here. If the scheme does not have an ABC, the ‘Asset Breakdown & Investment Risk’ section of the scheme return relating to ABC assets will need to be revised to reflect a zero percentage.

If you have previously provided ABC information before 30/11/2014, then this information has been archived and is not shown on the scheme return. The Regulator is asking for ABC information in a different format within scheme returns issued after 30/11/2014, so you will need to provide ABC information to us in this new format.

If you are providing ABC details for the first time, then simply perform the 'Add new ABC details' function on this page and input the required data.

Providing updates to the ABC details (‘amend’ or ‘remove’)

The Regulator would also expect that an ABC arrangement is valued each time a scheme funding (Part 3) valuation is completed. Therefore after a new Part 3 valuation has been submitted within the scheme return, the ABC details as at that date will need to be updated by pressing the ‘amend’ option. If the scheme wishes to update the ABC figures on a more frequent basis (e.g. annually) then this is also possible by using the ‘amend’ function.

It is not possible to input an ABC valuation effective date which pre-dates the latest Part 3 valuation effective date as it would be expected that the details of the ABC as at the latest Part 3 valuation date would be available.

Once a user updates an ABC by using the ‘amend’ function to a different valuation effective date, then the ABC details that had been previously entered will be archived into the 'Historical ABCs' section of this page. The updated ABC details are stored in the 'Current ABCs' section.

If the scheme no longer has an ABC, then the user should update the scheme return by using the 'remove' function. The ABC details will then be archived into the 'Historical ABCs' section.

Historical ABCs

The 'Historical ABCs' section has been created to allow users to view previous details of the ABC valuations.

Once there are historical ABC entries created, this page will display a historical ABC section which the user can use to browse previous ABC valuations. If there are no historical ABC entries, the page will not display a 'Historical ABCs' section.