The Pension Protection Fund (PPF), set up to compensate DB members when their sponsoring employer can no longer support the scheme, has undergone a number of changes in recent years. The size of its fund (and expertise) has grown significantly and the funding environment has changed.
Since 2015, the PPF levy has been administered under a new insolvency regime provided by the credit scoring company Experian. The new levy was introduced after extensive consultation with the industry on how the insolvency ratings would affect them and after gaining feedback on some of the challenges under the previous insolvency provider. So far this new framework has been well received.
The PPF is now consulting on the third levy triennium following work with an industry steering group to develop the forthcoming framework.
In February 2017, the PPF consulted on a levy rule for schemes without a substantive sponsor. The outcome of this consultation has been confirmed.
The PLSA will continue to work with the PPF and our members to ensure the levy is fine-tuned to respond to the DB funding landscape.
By Sarah Woodfield
Senior Policy Adviser