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PPF reduces levy cap and scaling factor
Article by Sophie Baker, Pensions Age, 30 September 2009
The Pension Protection Fund (PPF) has announced plans to reduce the cap on its levy to 0.5 per cent, and has reduced the levy scaling factor from 2.22 to 1.64.
Barnett Waddingham’s Paul Jayson, partner, comments: ““The reduction in the levy scaling factor is a bit of a red herring as it is there just to balance the figures. Most schemes deficits will have increased so they should not necessarily expect to see a reduction in the levy just because the scaling factor has reduced.
“The only way to reduce the cost of the PPF is to reduce the level of benefits. This consultation doesn’t fill me with confidence and there will currently be some people concerned about the long term viability of the PPF.”
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