PPF could seek special levy for DB consolidators

'Appropriate risk-based levy charge' would be considered

James Phillips
clock • 2 min read

Defined benefit (DB) consolidation vehicles may be subject to a special levy if they are deemed eligible for the Pension Protection Fund (PPF) in the event of a failure.

The lifeboat fund said an "appropriate risk-based levy charge" would be considered if members in such consolidators, also known as ‘superfunds', were able to claim compensation under legislation. Giving evidence to the Work and Pensions Committee's (WPC's) inquiry into the government's DB white paper today (6 June), PPF chief executive Oliver Morley said: "The way a superfund could be designed could mean it was automatically compliant with the [existing] legislation and eligible for PPF compensation. Assuming it is, then we would want to make sure that the levy that was applied reflected...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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