Certification

Recertification

Recertifying contingent assets after a gap in certification

Where you previously certified a contingent asset but did not do so for 2016/17, you may re-certify that contingent asset for 2017/18 without re-submitting documents required for a new certification provided that the conditions set out below are met.

In order to have your existing contingent asset recognised as a re-certification for 2016/17, you must complete a new contingent asset certificate on Exchange. In addition, you must also contact us confirming that:

• the certification is intended to be a re-certification of contingent asset certificate number [ ];

• the gap since the last certification is no more than 5 levy years; and

• the underlying contingent asset agreement has remained in place unchanged since the date of the last certification.

Certification - Type A

Legal opinion

If this contingent asset has not been recognised by the PPF Board for the purposes of a previous levy year, you must send a copy of the formal legal opinion to the Board, to be received no later than midnight on 31 March 2017.

If this contingent asset has been recognised for a previous levy year (and, if that is not the immediately preceeding levy year, the above criteria are met), the trustees/managers will have obtained a legal opinion when the contingent asset was first notified to the Board. In these circumstances, the Board does not in general require that legal opinion to be updated or resubmitted to the Board. However, in order to give the declaration in paragraph (d), the trustees/managers will need to be satisfied that the legal opinion remains valid. The trustees/managers may therefore choose to seek updated legal advice before making that declaration, and should do so if they have reason to believe that the legal position might have changed since the original opinion was given. If an updated opinion is obtained, a copy must be submitted to the Board and must be received no later than midnight on 31 March 2017.

Realisable recovery

Since levy year 2015/16, schemes have been required to certify the “Realisable Recovery” for Type A contingent assets. This is an amount chosen by the trustees which must be no greater than the lower of: (a)the amount the trustees are reasonably satisfied each guarantor could individually meet; and (b) any fixed monetary limit in the guarantee agreement. For further information about the Realisable Recovery, please refer to the PPF’s guidance in relation to contingent assets, available on the PPF website at:
https://www.ppf.co.uk/are-you-levy-payer

Certification - Type B(i)

Legal opinion

If this contingent asset has not been recognised by the Board of the Pension Protection Fund for the purposes of a previous levy year, you must send a copy of the formal legal opinion to the Board, to be received no later than midnight on 31 March 2017.

If this contingent asset has been recognised for a previous levy year (and, if that is not the immediately preceding levy year, the above criteria are met), the trustees/managers will have obtained a legal opinion when the contingent asset was first notified to the Board. In these circumstances, the Board does not in general require that legal opinion to be updated or resubmitted to the Board. However, in order to give the declaration in paragraph (d), the trustees/managers will need to be satisfied that the legal opinion remains valid. The trustees/managers may therefore choose to seek updated legal advice before making that declaration, and should do so if they have reason to believe that the legal position might have changed since the original opinion was given. If an updated opinion is obtained, a copy must be submitted to the Board and must be received no later than midnight on 31 March 2017.

Certification - Type B(ii) England and Wales

Legal opinion

Certificate of title

If this contingent asset has not been recognised by the Board of the Pension Protection Fund in relation to a previous levy year, then you must supply a certificate of title dated not more than 7 days prior to the date of the security agreement. If this contingent asset has been recognised for a previous levy year (and, if that is not the immediately preceding levy year, the above criteria are met), there is no requirement to obtain a new certificate of title. However you must take appropriate steps to confirm either that there have been no changes to the title position since the certificate of title was given, or that any changes to the title position have been taken into account in the valuation.

Certification - Type B(ii) Scotland

Legal opinion

Certificate of title

If this contingent asset has not been recognised by the Board of the Pension Protection Fund in relation to a previous levy year, then you must supply a certificate of title dated not more than 7 days prior to the date of the Standard Security. If this contingent asset has been recognised for a previous levy year (and, if that is not the immediately preceding levy year, the above criteria are met), there is no requirement to obtain a new certificate of title. However you must take appropriate steps to confirm either that there have been no changes to the title position since the certificate of title was given, or that any changes to the title position have been taken into account in the valuation.

Certification - Type B(ii) Northern Ireland

Legal opinion

Certificate of title

If this contingent asset has not been recognised by the Board of the Pension Protection Fund in relation to a previous levy year, then you must supply a certificate of title dated not more than 7 days prior to the date of the security agreement. If this contingent asset has been recognised for a previous levy year, there is no requirement to obtain a new certificate of title. However you must take appropriate steps to confirm either that there have been no changes to the title position since the certificate of title was given, or that any changes to the title position have been taken into account in the valuation.

Certification - Type B(iii)

Legal opinion

Certification - Type C(i)

Legal opinion

Evergreen

The "evergreen" obligation to renew or replace the letter of credit guarantee on expiry may be contained in a separate document. Where this is the case you will need to confirm to the Board of the Pension Protection Fund that any such separate obligations are still in force.

Certification - Type C(ii)

Legal opinion

Planned contributions

For example, the obligation to make the Planned Contributions may be contained in a separate document. Where this is the case you will need to confirm to the Board of the Pension Protection Fund that any such separate obligations are still in force.