The Pension Protection Fund (PPF) has published its consultation document on the PPF levy for 2009/2010 its draft determination, levy estimate and levy scaling factor for 2009/10.
The PPF in its accompanying press release comments that the proposed levy estimate of £700m is in line with the PPF’s August 2007 commitment.
The PPF has also proposed a levy scaling factor of 2.22 (which schemes can use to calculate individual bills) in advance of the 2009/2010 levy year. This figure is subject to consultation but the PPF does not expect it to change when confirmed in November. As part of its consultation exercise the PPF has also published a draft determination under section 175(5) Pensions Act 2004 setting out how the levy is calculated. The PPF has also said that it will shortly be publishing proposals to develop the levy formula to take direct account of long-term risk and intends to implement this change in 2011/2012 and not 2010/2011 as originally proposed.
The consultation period closes on the 23 October. The PPF has said that it does not anticipate substantial change in its draft proposals but will nevertheless consider comments received.