First PPF levies announced


The Pension Protection Fund (PPF) is one of the key elements in the Pensions Act 2004. It is designed to provide a safety net for members of underfunded defined benefit (DB) schemes whose employers become insolvent. The PPF will be established from 6 April 2005. The PPF will be primarily funded by a levy on potentially “eligible schemes” – namely, all schemes with a DB element, including hybrid schemes. But DB schemes already in winding-up before April 2005 and defined contribution (DC) only schemes are not liable for the PPF levy.

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