NAPF welcomes PPF strategy but cautions on levy

NAPF welcomes PPF strategy but cautions on levy

Commenting on today’s announcement of a long-term funding strategy by the Pension Protection Fund (PPF), Joanne Segars, NAPF Chief Executive, said:
"Pension funds welcome the PPF’s ambition to think through its long-term prospects in a transparent way.

"The key will be to find a balance between a prudent route to selfsufficiency, and an overly cautious approach that saddles firms with higher levies.

"As the PPF admits, the switch from RPI to CPI will have a great impact on its funding strategy. That must be reflected in the levies that companies have to pay.

"Also, the Government must acknowledge that it is the guarantor of last resort for the PPF, should their long-term plan not be realised.

"Although the long-term view of self-sufficiency is welcome, vital short-term issues need to be addressed. The PPF is still working on reform of the riskbased levy, and it must get this right over the coming months."

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