Weak employers could still avoid PPF risk levy

clock

Government proposals to charge employers a risk-based fee when introducing the Pension Protection Fund could open loopholes for weaker companies who want to avoid the extra levy, according to industry experts.

The Pensions Bill published today by the DWP, suggests employers with high-risk schemes will have to pay a higher levy, which will be linked to risk factors, such as levels of under-funding, credit ratings and investment strategies, if they want to get the benefits of the proposed Pension Protection Fund (PPF). While the risk-based levy has been created to safeguard 'healthy' schemes from paying to much into the PPF, Friends Provident pensions technical manager Chris Bellers warns the proposal could open up "all sorts of ways" for employer to avoid paying the risk levy. Employers wit...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers turn to smoothed funds to help manage volatility threat

Advisers turn to smoothed funds to help manage volatility threat

Decreasing exposure to equities also a popular strategy

Isabel Baxter
clock 26 March 2024 • 1 min read
Examining the 60/40: Building diversified portfolios in 2023

Examining the 60/40: Building diversified portfolios in 2023

Advisers have a lot to consider when it comes to portfolio diversification

Charlotte Moore
clock 14 April 2023 • 6 min read
Schroder Investment Solutions expands distribution of MPS

Schroder Investment Solutions expands distribution of MPS

Expanding the range of DFM choice on the Parmenion platform

Ayesha Venkataraman
clock 06 December 2022 • 2 min read