PPF 2011/12 levy will drop to £600m

In its levy policy statement, the lifeboat fund says the significant reduction in the levy estimate from £720m in 2010/11 to £600m for 2011/12 resulted from the proposed move from RPI to CPI indexation. The announcement confirms proposals the PPF began consultation on at the end of September. The PPF also confirms it will set the levy scaling factor at 2.07 and a scheme-based levy multiplier of 0.000135. It confirms the taper would start at 135% funding, there would be a risk-based levy cap of 0.75% of liabilities and says it would change how insolvency risk was measured. It say...