On September 29, 2022, the PPF issued a press release on the conclusion of its Long-Term Funding Strategy review and stated that it would be able to reduce significantly the levy paid by employers as a result of its good investment performance. The PPF confirms that it has built up reserves of £11.7 billion, which provide “a high degree of confidence” in being able to pay member compensation without relying on investment returns and levy payments. As a result of the funding approach maturing, the PPF is making a step change in its approach and entering a new phase where the focus will shift from building to maintaining its financial resilience. 

 

The PPF has also published its consultation on the 2023/24 levy rules, which announces that the levy estimate for 2023/24 is £200 million, down from £630 million on 2020/21 and £390 million in 2021/22. This means almost all PPF levy payers will see a reduction in their levy next year, which the PPF states it can now achieve without risking the long-term security of current or future members. In addition, the PPF is considering simplifying the way it calculates the levy, by moving to a methodology that places more emphasis on scheme underfunding and less on insolvency risk. It also aims to differentiate between schemes of very different sizes.

 

The consultation on the new levy rules ends on November 10, 2022.