True cost of DB scheme protection

Solvent pension schemes will need to pay a sum equivalent to 1% of employee salaries to finance the Pensions Protection Fund (PPF) proposed by the Department of Work & Pensions (DWP) white paper. While the costs would be much higher for insolvent schemes, Chris Erwin, investment principal at Aon Investment Consulting, believes these market estimates are reasonable and are in the same league as the recent increase in National Insurance contributions. The insurance premium the DWP is asking for would be paid into the PPF, which will be run by a statutory body with the purpose of protecti...