Update to the way the PPF calculates the risk-based levy

On 29 May 2014, the Pension Protection Fund (PPF) published ‘Consultation on the second PPF Levy Triennium — 2015–16 to 2017–18’. The purpose of the consultation document is to set out the PPF plans in respect of the levy for the next three years from 2015–16. The consultation is due to close on 9 July.

One of the proposals in the consultation is to change the way in which the PPF calculates the risk-based levy. The consultation document sets out a new ‘PPF-specific’ system of risk scoring, which could significantly affect the scheme’s risk-based levy. The proposals foresee a system of scorecards to segregate different types of organisations based on their insolvency risk. There will also be a separate scorecard for not-for-profit organisations…

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