The National Association of Pension Funds (NAPF) commented on the increased pension protection levy estimate for 2013/2014, announced by The Pension Protection Fund (PPF) today.
Joanne Segars, NAPF Chief Executive, said:
“These are difficult times for companies running final salary pension schemes with low interest rates piling significant pressure on already stretched scheme deficits.
“We welcome the PPF’s pragmatic decision to limit any increase in the levy to no more than it is collecting this year. While any increase at the current difficult time is unwelcome, it does reflect that the risks to the PPF have increased. The rise would have been more had it not been for the PPF’s approach.
“The PPF’s decision to keep a lid on the increase in the levy is realistic. It strikes a balance between protecting schemes from major extra costs and ensuring the PPF’s finances are strong and sustainable. It also recognises that schemes are facing extra pressures as a result of low gilt yields and quantitative easing.”
Notes to editors:
1. 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.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]