The Pension Protection Fund (PPF) has launched a consultation on its levy for 2026/27.
The PPF has a smile on its face
The lifeboat fund has proposed maintaining a zero PPF levy for conventional defined benefit schemes, having confirmed in September it would not charge a levy for 2025/26.
The PPF confirmed its current reserves alongside improvements in scheme funding mean it does not need to charge a material levy and instead will continue to build financial security primarily through its investment returns.
The PPF noted the zero levy is dependent on the passage of measures in the Pension Scheme Bill – which is currently in the committee stage in the House of Commons. To align decision making with bill progress, the PPF has proposed a flexible approach and confirmed it is “prepared to allow as much time as possible” for the bill to progress through the remaining stages before confirming its approach on 2026/27.
Pension Schemes Bill has a waggle in the tail?
Not sure what the PPF expect from the Bill but clearly they see its tail waggling.
“To align our decision making with the remaining passage of the bill we intend to take a flexible approach and have prudently set out a fallback option if required”
There aren’t many places in Britain where there’s a £14.1 bn surplus held , just in case…
The Pension Protection Fund (PPF) reported reserves of £14.1 billion in its latest Annual Report and Accounts for the 2024/25 financial year. These reserves represent the surplus of assets over the liabilities for the schemes that have already transferred to the PPF.
As of the end of March 2025, the PPF held £31.2 billion in assets under management and had £17 billion in liabilities for the transferred schemes. The difference of £14.1 billion serves as a strategic reserve to cover future potential claims from the universe of defined benefit pension funds it protects, and other risks like members living longer than anticipated (longevity risk).
