Companies will be driven out of business by the Pension Protection Fund levy because it will cost £1.5bn to keep afloat, not the £300m previously estimated by government, according to new actuarial calculations.
The Times says actuarial consultant Hymans Robertson has calculated the new £1.5bn figure based on proposals from a consultation paper published in July. That paper proposes to replace the flat levy imposed this year with a risk-based model taking effect from 6 April 2006. The levy will be higher for companies that have a higher risk profile – based on the size of deficit in their pension funds and the risk of insolvency. Hymans Robertson’s report states the government could cut the cost of the PPF levy for political reasons, but that this would be done in ignorance of risk factors wh...
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