PPF risk-based levy – 2008/09 determination


The Pension Protection Fund (PPF) was established in April 2005 to provide compensation for members of eligible schemes where benefits cannot be paid in full because: (a) there has been an insolvency event in relation to the employer; and (b) the scheme is underfunded on winding-up. Compensation is funded partly by the assets of the schemes for which the PPF assumes responsibility, and partly by an annual levy raised from potentially eligible schemes. The overall levy is made up of two parts – the scheme-based and risk-based levies. Each year the PPF is required to publish a determination setting out the methodology for calcuating the levy. The 2008/09 levy determination was published on 19 February 2008. The determination confirms the aim of promoting a stable levy estimate – the total levy for 2008/09 will be £675 million (the same as for 2007/08).

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