The Pensions and Lifetime Savings Association (PLSA) has responded to the PPF Third Triennium Consultation on draft levy rules for 2018/19 (Response here - Consultation)
Joe Dabrowski, Head of Governance & Investment, Pensions and Lifetime Savings Association, commented:
“We are pleased that the PPF has continued to engage closely with the PLSA and industry in developing the Levy rules and we have responded to this important consultation.
“It is good news for pension funds and their members that DB schemes will see a 10% reduction in the levy and SME’s a 30% reduction in bills. Indeed, two thirds of schemes will see a lower levy which is to be welcomed as trustees and pension managers continue to work to improve the sustainability of their schemes.
“We welcome many of the changes suggested in the consultation as this will improve the predictiveness of the levy. Specifically, we support the proposed changes to the “large and complex” and “independent full” scorecards. We also note the intention to use credit ratings based on the improved predictiveness for relevant employers, and support the proposal to ‘smooth’ ratings during the year, rather than assess on a one-off basis.
“While there is much to be positive about, we do need to be mindful that there will be many adjustments and changes that need to happen as a result of these proposals and not all schemes will see their payments fall. We would encourage the PPF to look for ways to mitigate the impact on schemes that will see potentially large year on year increases.
“Looking to the future, we would also encourage close observation of the impact of these proposals once implemented, to ensure that they do not drive unexpected behaviours or costs for schemes and sponsors.”
NOTES TO EDITORS:
Lee Blackwell, Head of Media & PR, Pensions and Lifetime Savings Association T: 020 7601 1726, M: 07713 073 023, E email@example.com
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association T: 020 7601 1748, M: 07901 007 713, E firstname.lastname@example.org
Eleanor Carric, PR Manager, Pensions and Lifetime Savings Association T: 020 7601 1718, M: 07825 171 446, E: email@example.com
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.