NAPF applauds lower PPF levy, but says all schemes must benefit

Pensions experts welcomed today’s announcement by the Pensions Protection Fund (PPF) that it plans to set a £600 million levy estimate for 2011/12.

Joanne Segars, NAPF Chief Executive, said:

“The PPF has moved quickly to confirm what we expected - that the shift to CPI reduces the PPF's liabilities and the levy it charges to pension schemes.

“This lower levy gives employers a bit of relief during tough economic times.

“The PPF deserves credit for its swift and decisive action. But we will need to look carefully at the impact of the proposed changes to the levy cap and scaling factor. It is important that schemes of all types should feel some benefit.”