The Pension Protection Fund (PPF) has published a guide to the pension protection levy in preparation for levy invoices due to be sent out from this month onwards. The levy is one of four ways in which the PPF is funded.
As well as setting out how the levy must be paid, how it is calculated and how schemes can query their invoice, the guide also includes information on the PPF’s power to charge interest on late levy payments from 2010/11 onwards.
The PPF will consider the following in determining whether it is reasonable or not to charge interest:
- The dates on which any payments of pension protection levy were made (including in previous years);
- Any failure by the scheme to reply to correspondence from the PPF about interest or the pension protection levy, or to provide the PPF with information it requests about interest or the pension protection levy;
- Any review, reconsideration or PPF Ombudsman appeals brought by the Scheme.