Responding to the new pension protection levy formula announced by the Pension Protection Fund (PPF) today, Joanne Segars, Chief Executive of the National Association of Pension Funds (NAPF), said:
“The new pension protection levy formula announced today, combined with the recent £120 million reduction in next year's levy, shows that the PPF is taking important steps in the right direction.
“The formula will establish a clearer link between a pension scheme's overall health and the amount it has to pay as a levy. Better funding levels and sound investments should mean a lower levy, which is very good news.
“We believe it is right that its levy should also be reduced where a scheme takes positive steps to reduce its risk to the PPF. This bottom-up approach set out in the new formula is to be applauded.
“We still need to examine the details of the formula, but we can already say that it represents an important reform to the Pension Protection Levy.”
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