Closing DB schemes won't prevent the PPF levy

The PPF levy was introduced just six months ago, but has already come under criticism for causing final salary schemes to close. But First Actuarial suggests this won’t actually help a company’s cash flow, as it will still have to pay the “insurance premium” of a PPF levy while covering the costs of setting up and contributing to a new pension scheme. Alan Smith, director of First Actuarial says: “It doesn’t seem to have sunk in with most people that just closing a DB scheme won’t stop the levy. If the company goes into liquidation and there’s not enough money to pay the benefits promise...