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PPF Confirms Levy Determination for 2018/19

• PPF confirms Levy Estimate at £550 million for 2018/19
• PPF confirms Levy Scaling Factor (LSF) of 0.48 for 2018/19
• PPF implements proposed changes to insolvency measures and simplification for certifying deficit reducing payments
• Deadlines for schemes and employers to take steps to reduce their levies confirmed.
Following the consultation launched in September, the Pension Protection Fund (PPF) has today (Tuesday) published its final levy rules for the 2018/19 levy year.

The PPF has confirmed that for 2018/19 the Levy Scaling Factor (LSF) will be 0.48 and the Levy Estimate is £550m. This compares to the levy estimate of £615m for 2017/18, meaning the 2018/19 estimate is just over 10 per cent lower.

David Taylor, Executive Director and General Counsel at the PPF, commented: “This policy statement confirms our plans for the levy in 2018/19, the first year of the third levy triennium.
The levy we receive continues to play a vital role in our funding strategy.  Despite significant risks, we’re on track to meet our long-term funding target which means we can set the levy at this level.

“Over the last two years we’ve worked with stakeholders to ensure the levy rules remain fit for purpose for the next three years.  I’m grateful for all the feedback we’ve received. In particular we’ve taken the opportunity to review and update the PPF-Specific insolvency model, building on our experience of using it. We are also confirming today that we will use credit ratings where they are available, or a specific credit model for financial institutions, to assess insolvency risk.”  

The PPF has also confirmed it will simplify the process for schemes to certify Deficit-Reduction Contributions (DRCs). Reflecting feedback to the September consultation, schemes will now be able to disregard all investment expenses in the calculation of their certifiable DRC. Smaller schemes also have the option to certify based on Recovery Plan payments.
David Taylor said: “I encourage schemes and employers to put in place risk reduction measures in the run up to the reporting deadlines in March and April 2018. We also intend to publish new documentation for contingent asset arrangements in January. The new approach for recognising deficit-reduction contributions provides a particular opportunity for schemes to gain more recognition for contributions made and so reduce their levies.”

Pension scheme trustees and employers can log on to view and check their insolvency data and scores at:

A full list of the relevant deadlines for the 2018/19 levy year has been published alongside the Levy Determination.


Notes to editors

• The Levy Scaling Factor and the Scheme-based Levy Multiplier will be 0.48 and 0.000021 respectively.
• The Risk-Based Levy (RBL) cap will drop from 0.75% of smoothed liabilities in 2017/18 to 0.5% of smoothed liabilities in 2018/19
The Pension Protection Fund protects millions of people throughout the United Kingdom who belong to defined benefit pension schemes. If their employers go bust, and their pension schemes cannot afford to pay what they promised, the PPF will pay compensation for their lost pensions. Tens of thousands of people now receive compensation from the PPF and hundreds of thousands more will do so in the future. The PPF is a public corporation, set up by the Pensions Act 2004, and is run by an independent Board.

The full policy statement and Levy Rules can be found at:

Key dates


Key dates

Monthly Experian Scores

Between 31 October 2017 and 31 March 2018

Deadline for submission of data to Experian to impact on PPF-specific Monthly Scores

One calendar month prior to the Score Measurement Date

Submit scheme returns on Exchange

By midnight, 31 March 2018

Reference period over which funding is smoothed

5-year period to 31 March 2018

Contingent Asset Certificates to be submitted on Exchange

By midnight, 31 March 2018

Contingent Asset hard copy documents to be submitted as necessary to PPF

By 5pm, 29 March 2018

ABC Certificate to be sent by e-mail to PPF

By midnight, 31 March 2018

Mortgage Exclusion (‘Officers’) Certificates and supporting evidence to be   sent to Experian

By midnight on 31 March 2018

Accounting Standard Change certificate

By midnight on 31 March 2018

Special category employer certificate

By midnight on 31 March 2018

DRCs Certificates to be submitted on Exchange

By 5pm, 30 April 2018

Certification of full block transfers to be completed on Exchange or sent to PPF (in limited circumstances)

By 5pm, 29 June 2018

(Exempt transfer application by 5pm 30 April 2018)

Invoicing starts

Autumn 2018

For further press information contact:
The PPF Press Office
0207 566 9775

[Published: 19 December 2017]

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