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.
Update on Insolvency Risk Provider - 20 March 2014
We can confirm that we plan to use a model for measuring insolvency risk which is tailored to our universe of sponsoring employers and the specific risks they pose us.
The model has been developed following months of work with Experian which was chosen as our new insolvency risk score provider last July following a competitive tender. However, further fine-tuning is needed to make sure that new insolvency scores can be integrated successfully into the pension protection levy framework.
View our press release, and our note, Information for Schemes on the Move to Experian, which explains more about what happens next.
2014/15 Levy Policy Statement and Final Determination
On 11 December 2013, we published the final determination and estimate for the 2014/15 pension protection levy. This confirms that the 2014/15 pension protection levy estimate will be £695 million, as originally proposed.
The levy scaling factor and the scheme based levy multiplier will remain unchanged from the previous year at 0.73 and 0.000056 respectively.
In our policy document, we also confirm the outcomes for the issues we consulted on and set out the key dates and deadlines for 2014/15 levy year.
For more information, view our information note. The full determination, appendices and associated guidance can be found on the 2014/15 determination page.
Invoicing the 2013/14 levy
We started issuing 2013/14 pension protection levy invoices to schemes in early September 2013. The invoicing page has been updated with the guide to the 2013/14 levy, which will be issued with invoices, some sample invoices and FAQs.
The following links may also be useful for further information on the levy:
On 17 December 2012, the PPF published its Policy Statement on the 2013/14 levy. This was accompanied by the Levy Rules and appendices, guidance on levy practice, block transfers, bespoke investment risk calculation and contingent assets. standard form contingent asset agreements are also on this page.
Levy Determination 2013/14
This booklet, produced by the PPF and CBI, explains how the levy works. It also sets out the actions you can take to reduce your individual levy bills and the deadlines you must meet to make sure these actions are taken into account.
|How to Reduce Your Levy|
This page contains links to all levy-related documents going back to 2005. Some of these documents have been superseded and are included for historic interest.
All Levy Documents