PLSA’s response to 2025/26 Pension Protection Fund (PPF) Levy Consultation

The PPF recently published a consultation on its proposed changes to the 2025/26 levy rules in which the PPF is proposing that the levy be maintained at £100 million for 2025/26, the same amount it collected in 2024/25.

However, the strong view of PLSA members is that proposed levy for 2025/26 is too high and should be reduced significantly (even potentially down to zero), on the basis that 80% of DB schemes are in surplus and the amount of surplus held by DB schemes is significant. Also, the PPF is already in a very strong financial position (with reserves of over £12 billion as at 31 March 2023) and the level of PPF claims in recent years remains low.

As stated in our response to last year’s consultation on the 2024/25 PPF Levy Rules, we strongly believe that:

• Section 177 of the Pensions Act 2004 requires urgent amendment, either as part of the Pension Schemes Bill or sooner, to either raise the year-on-year levy increase cap (to say 50%) or to remove it altogether.
• The total PPF levy for 2025/26 should be significantly reduced below £100 million.