On May 29, 2014 the Pension Protection Fund (the "PPF") published a consultation setting out its plans for the levy over the next three levy years (starting from 2015/16). A key change is the PPF's proposal to change the basis for measuring insolvency risk, which could lead to a redistribution of the levy of around GBP200 million. While some schemes may see a reduction in their bill, others could see a significant increase.
The changes provide for a "PPF-specific measure" of insolvency risk. The new model is based on financial information limited to organizations' sponsoring DB schemes, which will be captured by Experian (appointed by the PPF in July 2013) from a range of sources including Companies House and the Charity Commission. The model is designed to be more transparent, with schemes being able to check their data and scores through a free web portal. This approach should also help trustees understand the likely impact of future accounts on the scheme's levy.
Schemes wishing to respond to the consultation had until July 9, 2014 to do so.
Further information on the consultation can be found here.