Draft regulations have been laid before Parliament that set the Pension Protection Fund (PPF) levy ceiling for the 2009/10 financial year at £863,412, 967.

Eligible schemes are required to pay levies to the PPF unless they are exempt. Before the PPF sets its levies for individual schemes it must estimate the total amount that it expects to raise from all the eligible schemes. The PPF cannot impose levies that it estimates will raise an amount exceeding the levy ceiling for that financial year.

Comment:

Note that the ceiling is the maximum total amount that the PPF can raise from all eligible pension schemes but not necessarily the amount that the PPF expects to raise.

For 2009/2010 the PPF has already confirmed that it expects to raise £700 million which it says is the same levy estimate for 2008/2009 indexed to wage (see EPB bulletin12 December 2008 and EPB briefing Silver lining to the dark storm clouds over defined benefit pensions?).