The Pension Protection Fund (PPF) has announced that it will set a PPF levy estimate of £700 million, indexed to wages for 2010/11.

The PPF’s latest levy estimate is intended to fulfil a commitment made in August 2007 to set the levy estimate at £675 million for the next three years, indexed to wages, so long as there was no significant change in risk (seeEPB briefing Silver lining to the dark storm clouds over defined benefit pensions?).

The PPF has however made clear that it “will consider in the future raising the amount of levy [it] collect[s] above inflation, if necessary, to meet [its] commitment”.