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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.


Pension Protection Levy Statement and Consultation - October 2014


The Pension Protection Fund (PPF) announced today (Monday 6 October 2014) that the levy estimate for 2015/16 would be set at £635m, nearly ten per cent lower than the 2014/15 estimate.
The levy estimate was published as the PPF announced the proposed levy rules for 2015/16 following its consultation that ran between May and July this year.

The recent consultation on the PPF’s plans for the levy, over the next three years, attracted the highest number of responses to a consultation since 2005/06. There was strong stakeholder support for the move to Experian (the PPF’s new insolvency risk provider) and the new PPF specific model for assessing insolvency risk, confirming the PPF approach. All feedback was considered carefully and some changes have been implemented to further enhance the proposals.

The enhancements include:

  • amended rules on how the model reflects mortgages – ensuring mortgages that are not relevant to insolvency risk are excluded
  • A revised approach to  asset backed contributions (ABCs) – the PPF will now recognise all asset types not just UK property, provided the ABC is valued in a way that reflects the value to the PPF in the event of insolvency.

View the statement and consultation and the draft determination. The Determination and its additional documents, including appendices, revised standard contingent asset forms, guidance on ABCs and mortgage certificates can be found on the 2015/16 Determination page.




The documents below were published earlier in 2014.

 Document Details
Consultation on the second PPF Levy Triennium – 2015/16 to 2017/18

This consultation document sets out our plans for the pension protection levy over the next three years. 


Combined Annex to the Consultation


Includes definitions and scorecards, impact analysis, and example calculations and voluntary certificate.

Draft Determination 2015/16 - Extracts 



Draft Determination 2015/16 - ABC Appendix



Draft Determination 2015/16  - Insolvency Appendix 


 Experian Report - Developing a specific measure of insolvency risk for the Pension Protection Fund


The purpose of this paper is to document the creation of the PPF-specific Insolvency Risk Score created by Experian for the sole purpose of providing the PPF with an objective evaluation of the likelihood of any given eligible scheme employer or guarantor becoming insolvent during the next 12 months.

 PWC Report - Model Validation

The purpose of this report is to provide an independent review for the PPF on the Experian model.


Barnett Waddingham Report - Understanding the Impact of Change in Insolvency Risk Model

This report is intended to give an indication of the companies that are likely to see an improvement or worsening in relative insolvency risk score resulting from the differences between the Dun & Bradstreet failure score model (used prior to April 2014) and the PPF-Specific Insolvency Risk Model.


Webinar with the PPF and Experian


47-minute video with key figures from PPF and Experian explaining the key issues behind the levy proposals, and taking questions.
Webinar Q&As


Answers to questions that were submitted during and after the webinar.

 YouTube video - Martin Clarke


Our Director of Financial Risk summarises the main points of the consultation in a three-minute video.
 YouTube video -  Chris Collins

Our Chief Policy Advisor looks at the key issues in more detail.




The following links may also be useful for further information on the levy:

Details  Page/Document

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