PPF zero levy decision gives DB schemes welcome clarity and reduced costs

The decision marks the second consecutive year that conventional schemes will not be charged a PPF levy.

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said: “We fully support the PPF’s approach to reducing the levy it charges DB schemes and have been calling for a reduction to zero for several years.

“Prudent investment management and falling interest rates have combined to mean the vast majority of DB funds are now in a healthy surplus, posing a significantly reduced risk of having to rely on the PPF. The PPF is, in turn, unquestionably well-capitalised.

“With the end of the financial year approaching, and schemes in the process of carrying out financial planning for next year, this decision provides very welcome clarity on the costs schemes will face and eases some of the reporting burden they face.”

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, Senior PR Manager
020 7601 1761 | [email protected]