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Pension Protection Levy 

The pension protection levy is one of the ways that the PPF funds the compensation payable to members of schemes that transfer to the Pension Protection Fund.

These pages contain information about who has to pay the levy, how it is calculated, how schemes can reduce their levy, and the invoicing process. The information in the table below is based upon the rules for 2016/17 and so is relevant for invoices issued from September 2016.

2017/18 Levy

On 22 September 2016 we published the consultation document on the Pension Protection Levy for 2017/18. The document can be found here.

Changes are limited but include a proposed mechanism for stakeholders to notify Experian where the move to new UK accounting standard FRS 102 would otherwise cause an artificial movement in their rating.

The closing date for comments is Monday 31 October 2016. We plan to publish a Policy Statement and the Final Determination in December.

Third Levy Triennium 

The third levy triennium will cover the levy years 2018/19 to 2020/21. While we try to maintain stable rules within a triennium we can consider more significant changes at the change of triennia. On 28 July 2016 we published an update on the areas we plan to review within the Third Levy Triennium. The document can be found here


 Includes Information About

About the Levy 

Scheme-based levy, risk-based levy and other levies

   Specific Levy Year Information

Key information for current and past years

Who Has to Pay

Eligibility and Schemes in Assessment

How the Levy Works

Information used, transformation of s179 data and key elements of calculation

Insolvency Risk 

Calculation of insolvency risk, PPF-specific model and the Pension Protection Score Portal

   Multi-employer Schemes

Use of weighted levy rates for multi-employer schemes

   Incomplete Mean Scores

Use of averaged calculations where Mean Scores not available for all employers

   Scheme Structure

Scheme structure factors for Partial Segregation, Last Man Standing and Centralised Schemes

2016/17 Levy FAQs

FAQs specific to the levy year 2016/17 on the topic of mortgage exclusions


How underfunding is calculated

Data Deadlines

Data Deadlines for the 2016/17 Levy

Risk Reduction


   Contingent Assets

Types of Contingent Assets and Guarantor Levy Band adjustment

   Deficit Reduction Contributions

Basis for DRC recognition in levy calculations

Block Transfers

Certification of Block Transfers


Invoicing the 2016/17 levy

   Querying Your Invoice

What to do if you think your invoice is incorrect

Levy Waivers

Who can apply for a waiver and how to do it

Reviews and Appeals

What rights of appeal exist and what is the scope, deadline for appeal etc?



Additional Guidance


Levy Data Correction Principles
Guidance on ABCs
Guidance on Bespoke Investment Risk Calculation
Guidance on Block Transfers
Guidance on Contingent Assets
Guidance on Exclusion of Mortgages


Trustees and employers can check their Experian data and scores by logging on to the Pension Protection Score Portal