View more on these topics

PPF Levy to remain stable

The PPF has announced its pension protection levy will remain stable for 2009/2010.

In 2007, the PPF said it would set a levy estimate of £675m for the next three years, indexed to wages, so long as there was no significant change in risk. Today, the PPF announced that this figure would remain at £700m, £675m plus indexation.

In addition it has also proposed a levy scaling factor of 2.22, in advance of the 2009/2010 levy year. This figure is subject to consultation but is unlikely to change when it is confirmed in November.

Reaction to the news has been largely postitive. John Ball, head of defined benefit consulting at Watson Wyatt, says that the PPF has “clearly learnt from last year’s experience when its unexpected increase in the scaling factor caused the large jump in the levy that pension schemes were forced to pay”.

He adds that employers will welcome the intention to hold the levy at broadly the same level, particularly given comments made a few months ago that the credit crunch might give the PPF an excuse to increase the levy.

Recommended

Pop goes the wheeze

One of the delights of being a journalist is that we are often invited to meetings and lunches with investment houses, fund managers and other financial wizards.

IFA firms link up for passive strategy

Eight IFA firms have joined forces to set up Evidence Based Investment Solutions, a service dedicated to passive investment strategies.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com