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.
Update on Insolvency Risk Provider - 9 January 2014
In July 2013, we announced that we had appointed Experian as our new insolvency risk provider, replacing Dun & Bradstreet after eight years.
At that time, we said that we would not use Experian insolvency scores until the 2015/16 levy year. In the meantime, however, we would work with Experian to develop a new model for calculating insolvency risk and then evaluate it alongside the company’s standard product. We also committed to involving an industry steering group in that work.
We had intended to make an announcement about the new model by the end of 2013 but, unfortunately, development work has taken longer than we originally anticipated. This means that levy payers will not be able to see their new scores in early 2014 as we originally intended.
We are making steady progress with Experian but want to make sure that any new model we consult on is robust and fit-for-purpose.
In the meantime, we will continue working with Experian and the industry steering group to ensure the model meets our tests of being suitably predictive, transparent for levy payers and a better fit for the PPF universe.
We will continue to provide updates on progress as necessary and will consult with all interested parties once we are ready to set out the various options.
We are committed to giving levy payers as much time as practically possible to understand any new methodology before it is used in levy calculations.
2014/15 Levy Policy Statement and Final Determination
On 11 December 2013, we published the final determination and estimate for the 2014/15 pension protection levy. This confirms that the 2014/15 pension protection levy estimate will be £695 million, as originally proposed.
The levy scaling factor and the scheme based levy multiplier will remain unchanged from the previous year at 0.73 and 0.000056 respectively.
In our policy document, we also confirm the outcomes for the issues we consulted on and set out the key dates and deadlines for 2014/15 levy year.
For more information, view our information note. The full determination, appendices and associated guidance can be found on the 2014/15 determination page.
Invoicing the 2013/14 levy
We started issuing 2013/14 pension protection levy invoices to schemes in early September 2013. The invoicing page has been updated with the guide to the 2013/14 levy, which will be issued with invoices, some sample invoices and FAQs.
The following links may also be useful for further information on the levy:
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