PLSA response to PPF third triennium consultation
The Pensions and Lifetime Savings Association (the Association) welcomes the PPF’s ongoing work to develop the assessment of insolvency risk for the PPF levy. The levy is a key consideration for pension schemes and it is important that the model used to measure insolvency risk is robust, predictive and simultaneously does not unduly burden schemes through its cost or complexity.
The latest consultation confirms the direction of travel set out earlier in the year, and it is good news that the majority of schemes will see a reduction in their levy, and SME’s will see a 30% reduction in bills. Nonetheless, the proposals include a number of significant changes which we believe it will be important that the PPF monitors closely following implementation, as well as taking steps to mitigate the impact on schemes that will potentially see large year on year levy increases.