In most cases, the only way to do this is through a PPF+ buyout transaction. As the name indicates, a PPF+ buyout deal enables scheme members to receive beneﬁts above the PPF level of compensation from an insurance company.
THE KEY DIFFERENTIATOR – OUR EXPERIENCE
Our team’s industry-leading experience of these types of deals encourages insurers to provide quotations. Generally, more quotations translate to cheaper prices and therefore better results for scheme members.
Handling a PPF+ buyout deal requires specialism; if the pricing is attractive then the scheme should be prepared to transact quickly.
Ideally, all of the above four steps should be completed within 18-24 months (and the bulk annuity policy should usually be in place within the ﬁrst 6-9 months to provide a stable foundation).
WHAT IF THE SITUATION IS NOT RIGHT TO TRANSACT AT THE FIRST ATTEMPT?
In such a situation, price monitoring and negotiation with insurers will be vital. JLT’s latest insurer price tracking technology enables our clients to get full actual insurer quotations quickly and easily. We are also able to cost-effectively commence daily bulk annuity price tracking once a full insurer price has been obtained. This is useful
- If debt recoveries, unsold company shares and/or a borderline asset position (relative to the 100% PPF level) are obstructing an immediate transaction, or if negotiations with the employer are on-going
- To provide information to the PPF about the position relative to the 100% PPF benchmark
Once any barriers to a transaction are overcome, a rapid transaction will be possible because all insurer quotations (even while price monitoring was taking place) will have been obtained using full individual member data.
PPF ADMINISTRATION EXPERTISE
Data Audit and Cleansing
We possess broad data audit and cleansing expertise which we have developed through our hands-on experience by completing large numbers of discontinuance and winding-up cases. Our areas of expertise include
- Rapid audit process
- GMP reconciliation and equalisation
- Detailed beneﬁt conﬁrmation with members
- Personal details veriﬁcation
PPF Administration Support
Up to 2017, JLT has transferred more cases to the PPF (including PPF and FAS cases) than any other organisation. This has enabled us to
- Have a solid working knowledge of PPF beneﬁts and procedures
- Have a thorough understanding of the assessment period process
- Have automated systems for implementing the PPF’s approach to GMP equalisation