The PPF has published on its website information about 2008/09 pension protection levy invoices, which schemes should now have started to receive. This includes links to explanatory information which will be included with the invoice and a link to a new feature on the PPF website: a Queries and Reviews page containing information on how to query the invoice and/or appeal a scheme's failure score(s) with D&B.
The PPF has also issued its 2009/10 Pension Protection Levy Consultation. It states: "The Board considers the proposals contained in this document to be firm ones, made in the light of previous consultation, and does not anticipate substantial change. Any comments on this document received by 23 October will, however, be considered". The document confirms the policy direction established in the August 2007 consultation (and the November 2007 consultation response), which outlined the PPF's proposals for calculating the 2008/09 and 2009/10 levies. However, the PPF is seeking views on how some of that policy is carried through to 2009/10. The document also states that, from November, the Pensions Regulator's Exchange service will be live for certificates for contingent assets, deficit reduction contributions and block transfers.
Forthcoming consultation: long-term levy proposals
The PPF has announced a forthcoming three-month consultation on the levy from 2011/12, to build on the August 2007 consultation about how the levy can reflect the long-term risk to the PPF. The main aim will be to achieve greater fairness in the way levy is calculated. The PPF will propose to:
- add a component to the risk-based element of the levy to reflect a scheme's contribution to the long-term risks that PPF faces, even from well-funded schemes; this will include taking into account a scheme's investment strategy and credit risk over time
- provide the potential to reduce the scheme-based element of the levy, and
- offer greater year-on-year stability in individual invoices, because the levy will become less sensitive to short-term changes in insolvency ratings and levels of underfunding.