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Huge levy increase ‘unacceptable’
Published:  26 January, 2009

Widespread irritation with the Pension Protection Fund (PPF) levy has been revealed in a survey of schemes undertaken by Buck Consultants.

Its survey of 96 schemes found that 82% thought the PPF’s dramatic increase in the scaling factor for setting the 2008/2009 levy was unacceptable. While 38% found the increase in the levy disingenuous and a further 94% stated that they would like the scaling factor to be fixed in advance to the year in which it relates.

Kevin Le Grand, head of technical services at Buck Consultants, said: “It is not acceptable to hide behind the excuse that the original ‘estimate’ was just that, when the final figure is more than twice the estimate – particularly when the cost numbers are so large.”

These feelings of resentment led to a further 77% of respondents believing that the PPF was not independent of government and that 46% had lost confidence in the organisation.

Le Grand said while the PPF had a noble purpose, it was being undermined by its management of the levy, in particular the late announcement of changes and the perception that outcomes can appear “arbitrary and unfair”.






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