Robert says: ‘Most weeks, I am enthusiastically offered a ‘a free credit score’. Most weeks, I choose to ignore said offers!
However, failing to monitor the credit score of a defined benefit scheme sponsoring employer can prove to be extremely costly.
The Pension Protection Fund (PPF) first came into existence in 2006, providing a lifeboat for members of defined benefit (DB) pension schemes. Similar to paying an insurance premium, it is funded by levies on all eligible Defined Benefit Schemes.
In partnership with the PPF, Experian produces an assessment of Insolvency risk (a ‘score’) for sponsoring employers which forms a key component of the levy calculation. These scores are largely based on key financial metrics from Company accounts and, in our experience, it is a common misconception that these scores are ‘final’, correct and consequently do not require review.’