The Pension Protection Fund ("PPF") published its 2014/15 Levy Determination on 11 December 2013, setting out the basis on which it will charge the Pension Protection levy for the 2014/15 Levy Year. This follows the Levy Consultation published on 5 September, to which there are a limited number of changes.
In its Determination, the PPF confirms that it will not make any changes to the calculation of the Levy Estimate in the 2014/15 Levy Rules and, therefore, it will remain at £695 million.
The PPF clarifies that, for the relevant months in 2014, the PPF will use the scores produced under the new Dun & Bradstreet ("D&B") methodology to measure insolvency risk. The new D&B methodology will be introduced in the UK in early 2014.
The PPF's proposal to allow schemes to recertify contingent assets so long as they have been certified at some point in the previous five years, has been confirmed. Additionally, the proposed change to the wording of the trustees' certification will be introduced, although this will now be implemented in 2015/16 and not in 2014/15 following feedback received on the consultation.
The PPF has decided not to include a rule in its Determination that would permit the recalculation of the 2014/15 levy due to the impact of the future enactment of the new definition of money purchase benefits contained in Section 29 of the Pensions Act 2011.
The PPF has also published guidance together with its Determination, which can be accessed here.