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Pension Protection Levy 


Third Levy Triennium

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 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.

You can also access key documents explaining how policy is on the levy is developed, through consultation, on the Policy Development page. On 17 December 2015, the PPF published the Policy Statement and Levy Rules for the levy year 2016/17. These can be viewed on the 2016/17 Levy Determination page.

30 March 2016:  We have today updated the 2016/17 Transformation Appendix to correct an omission in the drafting. This update will ensure that the original policy intention is achieved. More detail about the update can be found here.

 Section

 Includes Information About

About the Levy 

Scheme-based levy, risk-based levy and other levies

   Specific Levy Year Information

Key information for current and past years

Who Has to Pay

Eligibility and Schemes in Assessment

How the Levy Works

Information used, transformation of s179 data and key elements of calculation

Insolvency Risk 

Calculation of insolvency risk, PPF-specific model and the Pension Protection Score Portal

   Multi-employer Schemes

Use of weighted levy rates for multi-employer schemes

   Incomplete Mean Scores

Use of averaged calculations where Mean Scores not available for all employers

   Scheme Structure

Scheme structure factors for Partial Segregation, Last Man Standing and Centralised Schemes

2016/17 Levy FAQs

FAQs specific to the levy year 2016/17 on the topic of mortgage exclusions

Underfunding

How underfunding is calculated

Data Deadlines

Data Deadlines for the 2016/17 Levy

Risk Reduction

Introduction

   Contingent Assets

Types of Contingent Assets and Guarantor Levy Band adjustment

   Deficit Reduction Contributions

Basis for DRC recognition in levy calculations

Block Transfers

Certification of Block Transfers

Invoicing

Invoicing the 2015/16 levy

   Querying Your Invoice

What to do if you think your invoice is incorrect

Levy Waivers

Who can apply for a waiver and how to do it

Reviews and Appeals

What rights of appeal exist and what is the scope, deadline for appeal etc?

 

 

Additional Guidance

 

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