Weak employers could still avoid PPF risk levy

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...