The Pension Protection Fund has today published its final levy rules for the 2023-24 levy (to be invoiced in autumn 2023). Citing the continued improvement in its financial resilience, the PPF expects to collect £200m, almost half of that estimated for 2022-23 (£390m), with around 98% of schemes predicted to see a levy reduction. Exceptions are those where underfunding has increased significantly.
What are the final Rules?Longer-term proposals
The PPF will reflect on the feedback received on its proposals for the future of the levy.
The PPF has sought to reassure larger and stronger schemes some of whom were concerned that the changes might lead to higher levies as they may pay a proportionately greater share. The PPF confirmed that it considers higher levies in future to be ‘genuinely unlikely’.
The PPF has also confirmed that it will share all feedback on the use of any excess reserves with the DWP, acknowledging that the decision for this rests with Parliament.