The Pension Protection Fund (PPF) has finalised its levy rules for 2023-24. Some of the highlights are:
- The risk-based levy cap will remain at 0.25% of scheme liabilities
- The risk-based levy-scaling factor will be reduced by 23% to 0.37%
- The scheme-based levy multiplier will be reduced by 10% to 0.000019
- The increments between levy bandings have been halved, meaning that there is less of a cliff edge for those schemes that move between levy bands
- The levy estimate has been nearly halved and is £200 million, down from last year’s levy estimate of £390 million
- As a result, the PPF expects that 98% of schemes will pay a lower levy this year and that the majority of schemes that pay a risk-based levy will see their risk-based levy reduce by more than 50%