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 calculcated, how schemes can reduce their levy, and the invoicing process.
Latest News - 29 January 2010
The Pension Protection Fund has today published '2011/12 Pension Protection Levy Consultation Policy Statement: Insolvency Risk'.
The following changes apply - all schemes and employers should take note of them and act as soon as possible before the 31 March 2010 - the date on which insolvency risk in respect of the 11/12 levy is taken.
- D&B will collect accounts from the Charity Commission. Employers filing accounts with the Charity Commission will now have them automatically picked up by D&B up until 30 March 2010. If you are in any doubt that D&B may not pick up your accounts from the Charity Commission website, we recommend you send them directly to D&B.
- A new attribute called ‘nationwide’ will be introduced for businesses with three or more branches in different UK regions which will mean they are assessed as a national rather than regional employer
- If you think you may be affected by this change, you should contact D&B as soon as possible to ensure they hold the correct information on your branch locations. This attribute cannot be appealed after 31 March 2010.
A new probability of insolvency table for 2011/12 has also been published. This will affect all schemes’ levies. We recommend speaking to D&B as soon as possible to see if there’s any information you can provide that will affect your score.
See our FAQs on D&B and Failure Scores for more information.
18 December 2009
The Pension Protection Fund (PPF) has today published the 2010/11 Pension Protection Levy Policy Statement. The document sets out:
- that the Board aims to collect an overall levy of £720 million
- the levy scaling factor of 1.64
- a risk-based levy cap of 0.5 per cent of liabilities, to protect the most vulnerable 10 per cent of schemes
- a change to the way probabilities of insolvency for foreign employers are calculated
- changes to the requirements for certification of block transfers,and
- a 9 April 2010 deadline for certification of deficit reduction contributions.
As part of this package the PPF published the final levy determination for 2010/11. All documents associated with this can be found on the 2010/11 Determination page.
9 November 2009
The Pension Protection Fund today published proposals for the 2011/12 pension protection levy year which improve the way it assesses the insolvency risk for sponsoring employers of pension schemes that pay the levy.
These proposals reflect industry feedback and a review of methodology and insolvency probabilities carried out by Dun & Bradstreet (D&B) which continues to measure insolvency risk for the PPF.
View the 2011/12 Pension Protection Levy Consultation: Insolvency Risk
16 October 2009
Invoicing the 2009/10 levy started today. Please see our invoicing section for more information.
30 September 2009
The Pension Protection Fund (PPF) has today published The 2010/11 Pension Protection Levy Consultation. The document includes:
- Confirmation that the Board aims to collect an overall levy of £720 million
- Levy scaling factor set at 1.64, a reduction from 2.22 during 2009/10
- Plans to reduce cap on pension protection levy from one to 0.5 per cent of liabilities, to protect the most vulnerable 10 per cent of schemes
- A proposed change to the way probabilities of insolvency for foreign employers are calculated
The consultation will run until Wednesday 11 November.
As part of this consultation, the PPF published the draft levy determination for 2010/11, and all documents associated with this can be found on the 2010/11 Determination page.9