Questions & Answers
Telling us details of a block transfer - the PPF’s requirements
For levy year 2017/18 the PPF requires details of all Full Transfers (as defined in the levy Determination, as set out below) to be reported, via Exchange, by the transferring and receiving schemes. Please note that the PPF does not expect transfers that do not meet the definition of Full Transfer to be reported.
Schemes and their advisors should refer to the Levy Determination, the Transfers Appendix, and the Block Transfer Guidance for full rules and information on the block transfer requirements.
Definition of Full Transfer
A 'Full Transfer' is where, on any date or dates prior to 1 April 2017:
(i) there are fewer than two members remaining in a scheme or a segregated scheme (the 'Transferring Scheme'); and
(ii) the 'Transferring Scheme' has transferred (in groups of two or more) members to one or more other schemes (each, the 'Receiving Scheme') and there remain fewer than two members in the 'transferring Scheme' on 1 April 2017.
Please note that the definition of Full Transfer assesses the position of the transferring scheme at 1 April 2017. It does not assess the position of a scheme at any other point during the levy year, and does not assess the position on the basis of each transfer. It is the transferring scheme’s position as at 1 April 2017 that counts. It may be that you have made transfers out, but do not meet the definition of Full Transfer. The PPF only require transfers that meet the definition of Full Transfer to be reported.
How to report a Full Transfer
The process has to be initiated by you, the transferring scheme. It cannot be started by the receiving scheme.
On adding a new transfer out you'll be asked to provide details of the counterparty receiving the transfer, which will be one or more eligible schemes, an insurance company, or an ineligible occupational scheme (such as a defined contribution scheme). It may also be the case that a new eligible scheme or section is created out of the transferred assets and liabilities.
If the transfer out is to an insurance company you'll need to provide their name, the total amount of the assets transferred and the first and last dates (which may be the same) on which the liabilities connected with the transfer passed to the receiving arrangement.
If the transfer out is to another scheme(s), you'll need to provide the Pension Scheme Registration Number of the receiving scheme(s). You'll be asked to provide the scheme name, the total amount of the assets transferred and the first and last dates (which may be the same) on which the liabilities connected with the transfer passed to the receiving arrangement. You'll be able to amend or remove this transfer if required.
Any Exchange user currently associated with the receiving scheme will receive email notification from the Regulator that they have been selected as the recipient of the transfer in. If there are no current users associated with the scheme then the trustees will receive a letter requesting that they register online.
Exchange will pre-populate your post-transfer valuation amounts as zero, as you are reporting a Full Transfer.
What do I do after providing details of a Full Transfer?
The information that you, the transferring scheme have provided, will remain pending (so will not be fully submitted on Exchange) until the receiving scheme (or schemes) have confirmed their details.
If the receiving scheme amends the transfer information you've provided, you will be notified of this and asked to accept the amendments. If the receiving scheme rejects the transfer, it will then be up to you (as transferring scheme) to decide the next action to take. You may, for example, decide to update the information originally entered, or remove the whole transfer.
What do I do after the receiving scheme has confirmed the transfer details?
Once all transfer details have been accepted by all the parties and the valuation details are complete, you will then be able to submit final confirmation of the transfer information and complete the certification page.
What if I enter but do not submit a Full Transfer?
If you have entered a Full Transfer on Exchange and, for any reason, that transfer remains “pending” and is not submitted, you must remove that transfer, otherwise the transfer may still be taken into account for the calculation of the levies.