Changes to your scheme return
We will be contacting defined benefit and hybrid schemes shortly to let them know when the scheme return is available to be completed and submitted via our online service, Exchange. This year's scheme return introduces some new requirements.
You are required to identify your scheme’s statutory employer(s)
The statutory definitions of an employer provide for an employer to be legally liable for meeting the scheme funding obligation, paying section 75 debts and triggering entry to the PPF on insolvency.It is important that trustees are able to identify the type of legal obligation an employer owes to the scheme.
This year's scheme return will include an additional question in relation to each principal or participating employer listed, to confirm whether that employer also meets the statutory definition.There will also be an opportunity for any other entities that the trustees discover who meet the statutory definition to be listed as participating employers.
For some schemes it may not be straightforward to identify the statutory employer(s), particularly where a scheme is closed to future accrual. It may be appropriate for the trustees of these schemes to seek legal advice when carrying out the exercise to identify the statutory employer(s).
Read our statement: Identifying your statutory employer (PDF)
Complete our bite-sized e-learning: How to identify your statutory employer
The hybrid section now includes additional questions
This year’s scheme return will include further questions for you if you are running a hybrid scheme, or a scheme which offers mixed benefit types. These questions are designed to collect the following information on your scheme:
- The structure of the scheme (ie separate defined benefit (DB) and defined contribution (DC) sections under one trust and/or any underpins)
- The structure of the retirement benefits offered (ie multiple benefits in payment, top-ups or underpins which may offer either a DB or DC benefit)
- Whether you use the same fund manager to manage investments in both your DB and DC sections
The information required will be technical in nature. We therefore suggest that if you have any uncertainty on how to respond, you should consult your investment adviser.
The Pension Protection Fund is changing the way it measures the levy with the introduction of its New Levy Framework
The Pension Protection Fund (PPF) is changing the way it measures the levy with the introduction of its New Levy Framework (NLF) for 2012/13. Key things to be aware of in updating Exchange are:
- Schemes with liabilities above £1.5 billion on their S179 valuation, will now be required to supply data on the results of a stress test on investment risk in Exchange.
- Other schemes can also supply this bespoke investment risk data. This may be worthwhile if the scheme has assets that are not covered by the standard assets classes on Exchange, for example derivatives.
- For all other schemes, the PPF will use the information about assets held by the scheme to measure investment risk. A high stress test will, however, be applied if schemes put their assets into the 'insurance' or 'other' category. So, it's recommended that schemes break their assets down into the components of the insurance policy or applicable investment.
You can find out more in the PPF’s latest Bulletin newsletter.
Submitting your scheme return online
Submitting your return online also allows us to keep a close eye on scheme funding and spot areas of potential risks to members’ benefits early on.
Key features include:
- asking you for essential information only
- pre-population of all current data - simply confirm or amend
- easy to use system with good response times
- clear guidance information and FAQs throughout
- fully trained in-house staff to help guide you through by telephone or email
- a longer period of time to complete your return.
Access Exchange and the scheme return
Scheme return FAQs
Here you'll find some frequently asked questions about completing the scheme return.
