Pension Protection Fund Levy Estimate for 2007/8

The Board of the Pension Protection Fund (PPF) has recently published for consultation the PPF levy estimate for 2007/8 of £675m which is £100m higher than the PPF levy estimate for 2006/7 of £575m.

It has been increased by the PPF Board to take into account some of the £275m of the estimated PPF levy for 2006/7 that was not collected by the PPF Board for various reasons, including market movements, and this increase will therefore help to reduce some of the PPF’s deficit.

The PPF Board has also decided to increase the “cap” on the risk-based levy for occupational pension schemes from 0.5% to 1.25% of the scheme’s PPF liability.