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 ensure that the guidance and assumptions that you use comply with the correct effective date and signing dates as per the following table.

Changes to these values in Exchange are planned to be implemented in January 2019. If you are using version G8 of the s179 guidance when adding a new s179 valuation prior to January 2019, please select option G7 and email the PPF to let them know that you have used version G8.

Similarly, if you are using version A9 of the s179 assumptions, please select option A8 and email the PPF to let them know that you have used version A9.

a) Effective date on or after 1 November 2018

Signing date Version number of the section 179 guidance Version number of the section 179 assumptions

On or after 1 November 2018

G8 A9

b) 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 6 April 2018

G8 A8

c) 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

d) 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

e) 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

f) 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

g) 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

h) 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

i) 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

j) 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

k) 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

l) 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

m) 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.