PPF looks to cap scheme liabilities

Final levy plans from the Pension Protection Fund (PPF) reward well-funded schemes and those with pa...

Final levy plans from the Pension Protection Fund (PPF) reward well-funded schemes and those with parent company guarantees, which the PPF claims effectively make its charge voluntary. Measures set out by the fund cap the levy at 0.5% of a scheme's PPF liabilities in an effort to benefit weaker firms, but will also reward well-funded plans by having no levy payable for those more than 125% funded on a PPF basis. While the PPF estimates it will raise £575m during the 2006/07 tax year, it said action taken by companies to lower their risk could lower the figure collected. Chairman of the P...