PPF publishes 2013/2014 levy determination

The Pension Protection Fund (PPF) has published the 2013/14 Levy Determination and confirmed that the levy estimate will be £630 million as originally proposed.

To raise this amount, the PPF also confirmed that it will reduce the levy scaling factor from 0.89 to 0.73 and that the scheme based levy multiplier will drop from 0.000085 to 0.000056.  There will also be a relaxation in the requirements for a guarantee from a bank or a custodian, so that in future a credit rating of A or above will be sufficient.

The PPF has updated its guidance for putting in place contingent assets to support schemes planning to use guarantees as contingent assets.  All other rules used to set the levy will remain unchanged.