Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2015
09

PPF pension levy drops to £615m

Open-access content Tuesday 22nd September 2015 — updated 5.50pm, Wednesday 29th April 2020

The Pension Protection Fund (PPF) has announced the 2016/17 levy estimate will be set at £615m, a £20m drop on the 2015/16 figure.

2

The PPF said it had reduced the figure because of a lower risk of employer insolvencies. 

While the PPF expected to see a further increase in underfunding risk as a result of recent market conditions, such as low gilt yields, this was offset by improvements in insolvency risk scores. 

David Taylor, general counsel at the PPF, said: "Our estimate for how much we will collect in 2016/17 - £615 million, is lower than last year's estimate of £635 million. This reduction reflects improvements in the Experian scores that scheme employers and guarantors are receiving, balanced by a deterioration in scheme funding."

According to a consultation paper on its levy rules, the PPF said for the sake of stability the rules for 2016/17 would be "substantially the same as for 2015/16". 

Kevin Burgess, head of Punter Southall's levy consulting team, said: "Schemes should check their invoice when it arrives to ensure it is correct and any invoices that are not as expected should be queried.  

"While the deadlines to provide new information to influence the 2015/16 levies have passed, there may still be scope to appeal invoices that are not calculated in accordance with the PPF's published rules."

The PPF previously said it would move to a new insolvency risk provider Experian with a new levy model for assessing insolvency risk.

Burgess said: "With the move to Experian, it is important to check that Experian is using the correct data. This is taken from the sponsor's financial accounts and it is important to check that Experian has correctly interpreted the accounts."

The PPF also said a move to Financial Reporting Standard 102 (FRS102) would be likely to affect some firms' risk scores from the year 2017/18, but the full-year effect would only be seen in 2018/19.

Nick Griggs, head of corporate consulting at Barnett Waddingham, said: "The PPF has indicated that a key consideration will be the impact of a move to the new accounting standard FRS 102. This change could result in a higher levy for multi-employer schemes. Employers may want to investigate the potential impact of this issue as early as possible."

The PPF is also launching a series of seminars for trustees and advisers in a number of cities about type A contingent assets. These assets help reduce insolvency risk or reduce the size of a claim in the event of insolvency, and they include parent company or group guarantees. 

The consultation on levy rules runs until 22 October. 

This article appeared in our September 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

'Increasingly prescriptive regulations' may leave insurers struggling to recruit non-executive directors

Insurers may soon struggle to hire non-executive directors (NEDs) because “increasingly prescriptive regulation” puts pressure on these roles, the International Underwriting Association (IUA) has said.
Friday 25th September 2015
Open-access content
2

Savers get 'harsh introduction' to drawdown

Savers who opted for drawdown for their pensions have lost more than £160m since pension freedoms were introduced, according to a pension provider.
Thursday 17th September 2015
Open-access content
2

Liverpool named whiplash capital of UK

Liverpool has been identified the third-party personal injury claims capital of the UK, actuaries have said.
Thursday 17th September 2015
Open-access content
2

Winning Waterloo

Winning Waterloo
Wednesday 2nd September 2015
Open-access content
2

Shock tactics and food security

Trevor Maynard discusses the recent food shock scenario published by Lloyd’s of London and considers its implications for insurers
Tuesday 1st September 2015
Open-access content
2

Insurance sector bottom of best customer service league table

The insurance industry ranks bottom in providing the best customer experience, according to a survey.
Tuesday 22nd September 2015
Open-access content

Latest from Risk & ERM

KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content
cj

Natural capital investing

Chris Howells and Andrew Dreaneen discuss how today’s investments in natural capital profit portfolios as well as the planet and humanity
Wednesday 1st February 2023
Open-access content
bl

'Takaful' models of Islamic insurance

Ethical, varied and a growing market – ‘takaful’ Islamic insurance is worth knowing about, wherever you’re from and whatever your beliefs, says Ali Asghar Bhuriwala
Wednesday 1st February 2023
Open-access content

Latest from September 2015

2

Political animals in the workplace

Bonnie Marcus offers nine top reasons why women find office politics frustrating
Wednesday 30th September 2015
Open-access content
Joanne Segars, chief executive NAPF © NAPF

Actuaries and pension industry oppose pension tax changes

Responses from the pension industry and actuaries to a public consultation have shown no support for changes to the pension tax system.
Wednesday 30th September 2015
Open-access content
ta filler

One in 10 parents 'fronting' car insurance for children

One in 10 parents of young drivers admit to fronting car insurance for their offspring at some point, according to research.
Wednesday 30th September 2015
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 09

Joanne Segars, chief executive NAPF © NAPF

Actuaries and pension industry oppose pension tax changes

Responses from the pension industry and actuaries to a public consultation have shown no support for changes to the pension tax system.
Wednesday 30th September 2015
Open-access content
ta filler

One in 10 parents 'fronting' car insurance for children

One in 10 parents of young drivers admit to fronting car insurance for their offspring at some point, according to research.
Wednesday 30th September 2015
Open-access content
2

Life expectancy not rising as quickly as anticipated, says IFoA

Increases in life span have been “much lower than in the past” over the past four years, according to an analysis by the Continuous Mortality Investigation (CMI).
Tuesday 29th September 2015
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Exposure Management Analyst

London, England
£40000 - £50000 per annum
Reference
148639

Pricing - Casualty Actuary

London (Central)
£128K + bonus + benefits
Reference
148638

Reporting Contractor

Negotiable
Reference
148636
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ