2023/24 Pension Protection Fund (PPF) levy consultation - PLSA response

The PLSA’s response to the 2023/24 Pension Protection Fund (PPF) Levy Consultation

The PPF recently published a consultation on its proposed changes to the 2023/24 levy rules to achieve a significant reduction in the levy it collects from DB schemes (from £390m in 2022/23 to £200m in 2023/24). 

This significant (almost 50%) reduction stems from the PPF’s strengthening financial position over recent years (to the point that it holds reserves of almost £12 billion as at 31 March 2022), and will result in almost all PPF levy payers having a lower levy next year.

The PLSA has been quietly lobbying the PPF over the past year or so to reduce its levy in the face of its improving finances. The PLSA and its members therefore welcome and fully support the PPF’s proposal to significantly reduce the levy amount to be collected in 2023/24.