This is inline with a pledge made last year to keep the estimate of £675m for the next three years indexed to wages as long as there is no significant change in risk.
The PPF says the decision to keep the same levy estimate as last year was necessary to help reduce the burden on levy payers during the current economic downturn.
A policy statement published today says: “The economic downturn has required the PPF Board to balance carefully the increase in risk to the PPF against the importance of stability for schemes and their sponsoring employers during more difficult times. The Board appreciates that the current economic climate brings issues of affordability in all areas into sharp relief. The Board felt that a levy estimate of £700m is appropriate for the 2009/10 levy year. This is the confirmed levy estimate for 2009/10.”
A number of respondents to the PPF’s consultation called for Secretary of State for Work and Pensions James Purnell to reduce the levy of compensation payable to the members it protects rather than risk increasing the size of the levy.
But, in the document, the PPF says: “The Board wishes to confirm that it has no intention of seeking to reduce the compensation payable to members of schemes that transfer to the PPF.”
The PPF has also confirmed a final levy scaling factor, which schemes can use to calculate their individual levy bills, of 2.22 in advance of the 2009/10 levy year.