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DWP considers allowing PPF greater flexibility to reduce pension scheme levy

Published on: 30 January 2025
Published by LNB News

LNB News 30/01/2025

Document Information

Issue Date: 30 January 2025

Published Date: 30 January 2025

Jurisdiction(s): England, Northern Ireland, Scotland and Wales

Article summary

The Department for Work and Pensions (DWP) is exploring proposals to grant the Pension Protection Fund (PPF) increased flexibility in reducing the levy collected from pension schemes. This initiative aims to unlock millions of pounds for schemes, potentially boosting economic growth by allowing employers to invest more in their businesses. Current legislation restricts the PPF from raising the levy beyond 25% of the previous year's collection. The DWP and the PPF are collaborating to consider further flexibility for the PPF Board to adjust the levy, which would require primary legislation. As of 31 March 2024, the PPF reported reserves of £13.2 billion, actuarial liabilities of £18.8 billion, and £32.1 billion in assets under management. Any changes to the pension protection levy will aim to balance the interests of levy payers and members.

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