PPF charge higher than expected

Draft Regulations* giving details of the Pension Protection Fund (PPF) initial levy reveal that eligible schemes will be charged a higher rate than expected. Whereas Malcolm Wicks, Minister for Pensions, originally estimated that defined-benefit (DB) schemes would need to pay £10 per member during the first year (OP, April 2004), it now transpires that the rate per active pensioner member will be as high as £15.

Trustees or scheme managers will be liable to pay the initial levy - which will fund compensation payable by the PPF Board - on 6 April 2005.