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.
On 15 December we made available provisional rules for 2017/18 and the Pension Protection Levy Policy Statement. The Policy Statement can be found here.
Changes for 2017/18 levy are limited but include an opportunity to notify Experian where a change in accounting standards impacts the calculation of trend variables, which compare data on a new accounting standard in the most recent accounts to that on a different accounting standard in a previous year. This is to allow the comparison to be done on the same basis. Certification will be available for all trend variables. A Certificate and guidance on its use is available on the Pension Protection Score Portal.
We indicated in December 2016 that it was our firm intention that these provisional rules would not be altered, apart from to include additional rules relating to eligible schemes which cease to have a substantive employer after a restructuring of their pension arrangements. Schemes should therefore feel able to take appropriate steps based upon the provisional rules.
16 January 2017: We have now added the accounting standard change certificate and guidance to the 2017/18 Determination Page and have added to the Insolvency Risk guidance pages. We have also corrected two minor drafting errors – to the definition of the accounting standard change certificate in the main part of the Provisional Determination and to the year reference on the Rent Deposit Mortgage Exclusion Certificate for 2017/18.
20 February 2017: As we indicated in December 2016, we have now published an additional consultation document which is inviting comments solely on new rules for schemes without a substantive sponsor. The deadline for comments is 5pm on 6 March 2017 and we will publish finalised rules by 31 March 2017.
Third Levy Triennium
The third levy triennium will cover the levy years 2018/19 to 2020/21. 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.
The guidance below reflects the 2017/18 rules except for those relating to invoicing and below which will be updated closer to the start of invoicing for 2017/18.
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