PPF Levy Consultation 2019/20: PLSA response

The consultation published by the Pension Protection Fund (PPF) in Autumn 2018 sought views on a number of proposals to amend its levy rules for 2019/20, the middle year of its third triennium.

The PLSA supports the PPF’s approach to not make any substantive changes to the rules during a triennium. It is also welcome that proposals have been made to streamline the process for block transfers. 

Nonetheless, there are additional changes that should be considered, these include: 

• more support for Small and Medium-sized Employers (SMEs) by having greater flexibility around levy payments
• parity of treatment between existing DB schemes and new commercial consolidators (“Superfunds”)
• the use of case-by-case methodology in levy determination for Superfunds.