PPF maintains lowest ever levy of £100m
PPF maintains lowest ever levy of £100m
28 Oct 2024
What you need to know
- The Board of the Pension Protection Fund (PPF) has published its consultation on the rules for the 2025/26 levy to be invoiced autumn 2025.
- The total levy estimate for 2025/26 is £100m, maintaining the same total from 2024/25.
- Most schemes can expect to pay a similar levy in 2025/26 compared to 2024/25, with 95% of schemes expected to pay a lower levy than 2023/24.
- The risk-based scaling factor is decreasing from 0.40 to 0.35. The scheme-based multiplier will increase from 0.0015% to 0.0018%.
- Schemes’ latest submitted liabilities on the section 179 PPF basis will be updated at 31 March 2025 using the latest section 179 valuation assumptions, A11, which in isolation will lower levies.
- Updating factors used to stress the assets and liabilities valued at 31 March 2025 in times of economic turmoil will in isolation increase the levy cost.
- There will be a simplified process for schemes to submit deficit reduction contributions as well as greater inclusion of schemes and a range of contributions that qualify for submission.
- The PPF has proposed adjusting its methodology from 2025/26 onwards so that the pool of schemes who pay risk-based levies is maintained and spreads the levy more reasonably.