Proposals issued October 2010

Confirmation given 31 January 2011

Policy statement issued May 2011

Draft guidance on the bespoke measurement of investment risk issued May 2011. Consultation ends on 24 June 2011

Consultation on the 2012/13 levy determination expected in autumn 2011

The PPF has confirmed its intention to implement a new levy framework from 2012/13. Key features of the framework confirmed in the policy statement include:

  • the levy formula will be fixed for three years;
  • market movements will be averaged over five years to reduce volatility in assessed funding levels (and scheme levies);
  • deficit repair contributions will continue to be recognised in the year after they are made;
  • account will be taken of investment risk;
  • schemes with liabilities over £1.5Bn will have to analyse the impact of stresses on their assets (draft guidance has been issued for consultation);
  • all schemes will have the option of individual certification of their investment risk (likely to be of most benefit to schemes using derivatives to manage investment risk);
  • the number of insolvency risk bands will be increased from six to 10, in response to concerns about cliff-edges between bands.