Section 179 valuation
Effective date
The “effective date” is the date in relation to which the assets and liabilities of the scheme are calculated (i.e. the “relevant time” as prescribed by the Pension Protection Fund (Valuation) Regulations 2005 [SI 2005/672].) This is the date that should be provided under this section, which should not be confused with the signing date specified below.
Signing date
The “signing date” is the date that the scheme actuary signed the section 179 report from which the submitted information is taken.
Guidance & assumptions:
Please note: the values G10 (Guidance) and A11 (Assumptions) will be available for you to select on the scheme return from Wednesday 28 February.
a) Effective date on or after 1 January 2024
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
|
On or after 1 January 2024 |
G10 | A11 |
b) Effective date between 1 May 2023 and 31 December 2023 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
|
On or after 17 January 2024 |
G10 | A11 |
|
Between 1 January 2024 and 16 January 2024 (inclusive) |
G9 or G10 | A11 |
|
Between 1 May 2023 and 31 December 2023 (inclusive) |
G9 | A11 |
c) Effective date between 1 December 2021 and 30 April 2023 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
|
On or after 17 January 2024 |
G10 | A10 |
|
Between 1 January 2024 and 16 January 2024 (inclusive) |
G9 or G10 | A10 |
|
Between 1 December 2021 and 31 December 2023 (inclusive) |
G9 | A10 |
d) Effective date between 1 May 2021 and 30 November 2021 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
|
On or after 1 May 2021 |
G8 | A10 |
e) Effective date between 1 November 2018 and 30 April 2021 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
|
On or after 1 November 2018 |
G8 | A9 |
f) Effective date between 6 April 2018 and 31 October 2018 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
|
On or after 1 April 2018 |
G8 | A8 |
g) Effective date between 6 April 2017 and 5 April 2018 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
|
On or after 6 April 2017 |
G7 | A8 |
h) Effective date between 1 December 2016 and 5 April 2017 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 December 2016 | G6 | A8 |
i) Effective date between 24 July 2014 and 30 November 2016 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 24 July 2014 | G6 | A7 |
j) Effective date between 1 May 2014 and 23 July 2014 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 May 2014 | G5 | A7 |
k) Effective date between 1 April 2011 and 30 April 2014 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 April 2011 | G5 | A6 |
l) Effective date between 31 October 2009 and 31 March 2011 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 31 October 2009 | G5 | A5 |
m) Effective date between 1 April 2009 and 30 October 2009 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 April 2009 | G5 | A4 |
n) Effective date between 31 March 2008 and 31 March 2009 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 October 2009 | G5 | A4 |
| Between 1 April 2009 and 30 September 2009 (inclusive) | G4 or G5 | A4 |
| On or before 31 March 2009 | G4 | A4 |
o) Effective date between 6 April 2007 and 30 March 2008 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 October 2009 | G5 | A3 |
| Between 6 April 2007 and 30 September 2009 (inclusive) | G4 or G5 | A3 |
p) Effective date between 11 September 2006 and 5 April 2007 (inclusive)
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 October 2007 | G4 | A3 |
| Between 6 April 2007 and 30 September 2007 (inclusive) | G3 or G4 |
A3 |
| On or before 5 April 2007 | G3 |
A3 |
q) Effective date on or before 10 September 2006
| Signing date | Version number of the section 179 guidance | Version number of the section 179 assumptions |
|---|---|---|
| On or after 1 October 2007 | G4 | A3 |
| Between 6 April 2007 and 30 September 2007 (inclusive) | G3 or G4 |
A3 |
| Between 1 November 2006 and 5 April 2007 (inclusive) | G3 |
A3 |
| Between 1 November 2005 and 31 October 2006 | V2 |
V2 |
Assets
Please enter monetary amounts where required in pounds, not thousands or millions.
Earlier versions of the section 179 certificate required you to deduct external liabilities from the value of the assets. However, all data should now be entered in line with the current certificate design which requires you to include the external liabilities in the total protected liabilities figure.
Please also include the percentage of assets which relates to contracts of insurance - see SI 2005/672 as amended for more information.
Contracts of insurance not included in the relevant accounts
Where the trustees hold contracts of insurance which are included in the asset value of the s179 valuation but which are not shown in the relevant accounts, please enter those assets as a percentage of the total scheme assets. Similarly, where a contract of insurance is given a different value in the s179 valuation than that shown in the accounts, the user should enter the difference in value (whether positive or negative) as a percentage of the total assets. The following example illustrates this.
Example:
The relevant accounts show the following asset values:
| Non-insured assets | £88,000,000 |
| Annuities | £10,000,000 |
| Total assets | £98,000,000 |
Suppose the annuity value of £10 million were calculated on a non-PPF method (say on the scheme funding assumptions). For the purpose of the s179 valuation the actuary would have to re-calculate the value of the annuity policy in line with regulation 7(2) of the Pension Protection Fund (Valuation) Regulations 2005 [SI 2005/672]. Say the value came out as £12 million, making the s179 asset value £100 million.
In this example the actuary should enter 2% as the 'percentage of assets held in the form of a contract of insurance where this is not included in the relevant accounts', this being derived as (12 - 10) / 100.
Liabilities
Please enter monetary amounts where required in pounds, not thousands or millions. Please do not include the expenses within the active, deferred and pensioner components, even where this was the approach taken in previous years.
External liabilities
External liabilities are items such as advisers' fees that have not been listed in the relevant accounts. They are not annuity contracts, defined contribution funds or AVC funds.
Total protected liabilities
This should include the external liabilities, even where the originally submitted data allowed for external liabilities via a deduction to assets.
Insured liabilities
Please provide the percentage of liabilities in respect of members whose scheme benefits were fully matched by deferred or immediate annuities purchased in the name of the trustee(s).
For valuations completed after November 2008 it is expected that scheme actuaries will calculate this information as a routine part of the section 179 valuation calculations. For valuations completed before that date, it would be acceptable for the actuary to calculate this information approximately in circumstances where the information has not been produced accurately as part of the valuation or in cases where it would entail a significant amount of extra work to identify the accurate information.
Proportion of liabilities
If you are providing the results of a valuation that was submitted on Exchange for the previous levy year and you do not know the split of liabilities between the different service periods, then you should submit the following assumed values:
| Pre-6 April 1997 element | 6 April 1997 to 5 April 2009 | Post-5 April 2009 | |
| Active members | 60% | 40% | 0% |
| Deferred members | 80% | 20% | 0% |
| Pre-6 April 1997 element | Post-5 April 1997 element | |
| Pensioner members | 90% | 10% |
If this is the first time that you are submitting the information for this valuation on Exchange, then you should provide actual values.
Average ages
These should be weighted by the section 179 liabilities provided on this form. Where it is not possible to calculate the average age weighted by protected liabilities, a different calculation of the average age may be provided (for example weighted by pension amount).
For valuations completed after November 2008 it is expected that scheme actuaries will calculate this information as a routine part of the section 179 valuation calculations. For valuations completed before this date, it would be acceptable for the actuary to calculate this approximately in circumstances where the information has not been produced accurately as part of the valuation or in cases where it would entail a significant amount of extra work to identify the accurate information.