I agree We use cookies on this website to help us provide the best user experience. By browsing this site you agree to their use - more information is available here.

Barnett Waddingham
0333 11 11 222

PPF releases levy consultation

Published by Nick Griggs on

The Pension Protection Fund (PPF) has released a consultation regarding proposals for the next three levy years.
“We recommend that schemes investigate the effect of these changes as soon as possible, as, in some cases, the impact will be significant.”

The main proposal is a change in the insolvency risk model used for PPF levy purposes.  The new model, which will replace D&B’s commercial model, has been developed specifically for sponsors of defined benefit pension schemes.  Whilst the new model will only come into effect from 31 October 2014 onwards, many companies are likely to see a substantial change in their insolvency risk rating (and hence their PPF levies).

The PPF has also proposed sweeping changes to the ways in which Asset Backed Contributions (ABC) and Type A contingent assets are treated for PPF levy purposes, as well as amendments to the current discount for ‘Last Man Standing’ schemes.

We recommend that schemes investigate the effect of these changes as soon as possible, as, in some cases, the impact will be significant.

We can offer an in-depth analysis of companies’ ratings under the new insolvency risk model (including a comparison against the ratings under the previous D&B model), and the effect that this is likely to have on schemes’ levies.  We can also illustrate the potential impact of the other proposed changes, i.e. ABCs, contingent assets, etc.

PPF Levy Forum

Have you ever wanted a guide to the workings of the PPF and the way levies are assessed? You'll also find practical advice on how to manage your scheme’s PPF levy.

About the author

  • Nick Griggs

    Nick advises a range of UK businesses on DB pension issues including risk reduction exercises, scheme funding, pension benefit design and accounting disclosures. He also acts as Scheme Actuary to a number of clients.

    View Biography

Updates delivered to you

Stay ahead with our latest comment, expert insight and event details.