Top News
Key Information
Top FAQs

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.

 

18 December 2014: PPF Levy Statement 2015/16

We published the Levy Rules for 2015/16 on 18 December 2014.

There are small amendments to the PPF-specific model in response to matters raised in the October consultation. These include:

  • altering the entry conditions for the large and complex scorecard so it will not capture businesses that file abbreviated accounts or whose only subsidiaries are dormant
  • capturing full time equivalent employee numbers, where businesses report these in their accounts, and request they are used in place of total employees
  • excluding immaterial mortgages (where they have been appropriately certified) in assessing the age of the most recent mortgage / secured charge

The Determination confirms that the levy scaling factor and the scheme based levy multiplier will be 0.65 and 0.000021 respectively. These factors were those published in October supporting the levy estimate of £635m, compared to £695m in 2014/15. 

We encourage schemes to ensure they have understood their new scores and that they engage with Experian if needed. Trustees and employers can log on to view and check their data and scores at: https://www.ppfscore.co.uk/

Please view the Policy Statement. The Determination and its supporting documents can be viewed on the 2015/16 Levy Determination page.

 

Key dates

For 2015/16 we will use information from the annual scheme return that is submitted via the Pension Regulator’s Exchange system to calculate levies. We will also use other data submitted to either the PPF or Experian as follows.

The deadline for submission is 5pm on Tuesday 31 March 2015, except as detailed below. The ABC certificate can be found on the PPF website and the Mortgage Exclusion (Officer’s) Certificates are expected to be available on the PPF/Experian portal from 22 December.


 Action  Deadline

Monthly Experian Scores

Between 31 October 2014  - 31 March 2015 

Deadline for submission of data to Experian to impact on Monthly Experian Scores

One calendar month prior to the Score Measurement Date (apart from October 2014 for which the cut off was 31 October)

Submit scheme returns on  Exchange

By 5pm, 31 March 2015

Reference period over which funding is smoothed

5-year period to 31 March 2015

Contingent Asset Certificates to be submitted on Exchange and with hard copy documents as necessary to PPF

By 5pm, 31 March 2015

ABC  Certificate to be sent to PPF

By 5pm, 31 March 2015

Mortgage Exclusion  (‘Officers’) Certificates and supporting evidence to be   sent to Experian

By 5pm on 31 March 2015

Deficit-Reduction Contributions Certificate to be submitted on Exchange

By 5pm, 30 April 2015

Deadline to confirm legal advice held on LMS status to be sent to PPF

By 29 May 2015

Certification of full block transfers to be completed on Exchange or sent to PPF (in limited circumstances)

By 5pm, 30 June 2015

Invoicing starts

Autumn 2015