A pensions lifeboat scheme has said it will not charge a levy this year to pension providers, saving \u00a345 million across 5,000 defined benefit (DB) pension schemes.<\/p>\n
The Pension Protection Fund (PPF) levy is a charge on eligible pension schemes that pays into a central reserve, which sits at a \u00a314 billion surplus.<\/p>\n
DB schemes promise pension savers a certain level of pension, based on their salary.<\/p>\n
The PPF steps in to protect employees\u2019 pensions if their firm collapses.<\/p>\n
This decision is due to reforms set out in the Pension Schemes Bill, the Government said.<\/p>\n
Pensions minister Torsten Bell said: \u201cRigid rules currently leave pension schemes paying millions into the Pensions Protection Fund even when extra funding is not required.<\/p>\n
\u201cThe Pension Schemes Bill will sweep away those constraints.<\/p>\n
\u201cThis will support better funded pension schemes and greater investment by firms.\u201d<\/p>\n
The Pension Schemes Bill rewrites rules around the levy making it easier for the PPF to adjust it year-on-year and without risking losing the power to charge if it drops to zero.<\/p>\n
This gives more flexibility to free up money in times of high surpluses.<\/p>\n
In view of its strong financial position, the PPF announced it would more than halve the 2024\/25 levy to \u00a345 million for the financial year 2025\/26 but it has now said the levy will be reduced to zero, without risking its ability to pay its members\u2019 benefits.<\/p>\n
Kate Jones, PPF chairwoman said: \u201cI\u2019m pleased that we\u2019re able to save DB schemes \u00a345 million this year.<\/p>\n
\u201cThe legislative changes we\u2019ve needed to further reduce the levy have made good progress, giving us the confidence to act decisively for this year\u2019s levy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"A pensions lifeboat scheme has said it will not charge a levy this year to pension providers, saving…\n","protected":false},"author":2,"featured_media":155284,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,71153,4178,4174,4175,71154,56,54,55],"class_list":["post-155283","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-pension-protection-fund","tag-pensions","tag-personal-finance","tag-personalfinance","tag-ppf","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/155283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=155283"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/155283\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/155284"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=155283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=155283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=155283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}