Pension Protection Levy

The pension protection levy is one of the ways that the PPF funds the
compensation payable to members of schemes that transfer to the Pension
Protection Fund.

These pages contain information about who has to pay the levy, how it is
calculated, how schemes can reduce their levy, and the invoicing process.
The information in the table below is based upon the rules for 2016/17 and so
is relevant for invoices issued from September 2016.

2017/18 Levy

On 22 September 2016 we published the consultation document on the

Pension Protection Levy for 2017/18. The document can be found here.

Changes are limited but include a proposed mechanism for stakeholders to

notify Experian where the move to new UK accounting standard FRS 102
would otherwise cause an artificial movement in their rating.

The closing date for comments is Monday 31 October 2016. We plan to

publish a Policy Statement and the Final Determination in December.

Third Levy Triennium

The third levy triennium will cover the levy years 2018/19 to 2020/21. While
we try to maintain stable rules within a triennium we can consider more
significant changes at the change of triennia. On 28 July 2016 we published
an update on the areas we plan to review within the Third Levy Triennium.
The document can be found here.

Section

Includes Information About

About the Levy

Scheme-based levy, risk-based levy and other levies

Specific Levy Year Information

Key information for current and past years

Who Has to Pay

Eligibility and Schemes in Assessment

How the Levy Works

Information used, transformation of s179 data and key elements of

calculation

Insolvency Risk

Calculation of insolvency risk, PPF-specific model and the Pension Protection

Score Portal

Multi-employer Schemes

Use of weighted levy rates for multi-employer schemes

Incomplete Mean Scores

Use of averaged calculations where Mean Scores not available for all
employers

Scheme Structure

Scheme structure factors for Partial Segregation, Last Man Standing and
Centralised Schemes

2016/17 Levy FAQs

FAQs specific to the levy year 2016/17 on the topic of mortgage exclusions

Underfunding

How underfunding is calculated

Data Deadlines

Data Deadlines for the 2016/17 Levy

Risk Reduction

Introduction

Contingent Assets

Types of Contingent Assets and Guarantor Levy Band adjustment

Deficit Reduction Contributions

Basis for DRC recognition in levy calculations

Block Transfers

Certification of Block Transfers

Invoicing

Invoicing the 2016/17 levy

Querying Your Invoice

What to do if you think your invoice is incorrect

Levy Waivers

Who can apply for a waiver and how to do it

Reviews and Appeals

What rights of appeal exist and what is the scope, deadline for appeal etc?

Additional Guidance

Levy Data Correction Principles

Guidance on ABCs
Guidance on Bespoke Investment Risk Calculation
Guidance on Block Transfers
Guidance on Contingent Assets
Guidance on Exclusion of Mortgages

Trustees and employers can check their Experian data and scores by logging
on to the Pension Protection Score Portal