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PPF hires new insolvency risk provider

01 August 2013

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The Pension Protection Fund (PPF) has replaced Dun & Broadstreet (D&B) with Experian as its insolvency risk provider.

Since 2005, the PPF has been using D&B to provide this service, but it decided to change supplier following a "competitive" tendering service.

This appointment represents the first change in supplier since the PPF began eight years ago.

As there will be a handover period between the two companies, the PPF will not be using Experian scores to calculate levies until the 2015/16 levy year.

D&B will continue to calculate the levy and the current methodology remains unchanged.

Experian will be working with the PPF, with input from stakeholders, to develop a bespoke model for calculating insolvency risk, and schemes and sponsoring employers will have access to the new insolvency risk scores from early 2014.

PPF chief operating office David Heslop said: "Assessing the risk of an employer going bust, which could mean its pension scheme entering the PPF, is at the heart of how we calculate individual levies and how we assess our overall risk. So, it is essential that we get the most suitable supplier to meet our future needs."

First published 01.08.2013