The PPF Ombudsman has issued his first determination which concerns a challenge to the PPF levy. The basis of the complaint was that risk-based levy charged to the scheme was too high as the PPF should have taken into account the insolvency risk of the holding company as well as the main employer.
The Ombudsman did not uphold the complaint. He found that the PPF had followed its March 2006 Determination in calculating the levy and he would not look behind that. It had been open to the company to put in place contingent assets to decrease the levy or to provide information on other employers which could be taken into account for the assessment of insolvency risk but it had failed to do either.
The main point of interest is that the Ombudsman will look to see if the PPF has followed its own levy Determination document and, if it has, any challenge is unlikely to be successful. It also acts as a reminder to companies that there are methods within the PPF's arrangements for reducing the levy - but the onus is on employers to take advantage of them.