The National Association of Pension Funds (NAPF) today (Wednesday) published its response to the consultation on the second Pension Protection Fund (PPF) Levy Triennium.
The consultation response builds on the NAPF’s support of the broad principles of the last levy framework (introduced 2012-2013) which established a more direct link between the risk a scheme poses to the PPF and the levy it pays.
Jackie Wells, Head of Policy & Research, NAPF, said:
“The objective behind this new model is to ensure the levy better reflects the insolvency risk of the organisations sponsoring defined benefit (DB) schemes. Any new model will bring inevitable changes to the levy which will result in some individual organisations paying more, particularly those outliers affected most by the PPF-specific insolvency risk model. While we support the transitional arrangements designed to assist outliers, the NAPF has called for firms with extremely high increases in their levy to be dealt with on a case by case basis.
“While there will initially be some marked variations in individual levies, the increased transparency and improved processes for submitting information in this new model is a very welcome improvement. All schemes should make use of these facilities and fill any data gaps in their entry to ensure their levy is as accurate as possible.”
A copy of the NAPF’s consultation response can be found here.
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Lucy Grubb, Head of Media and PR, NAPF, 020 7601 1726 or 07713 073023, [email protected]
Eleanor Bennett, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]