PPF Levy
The inclusion of provisions intended to give us greater flexibility to further reduce the conventional PPF levy are a positive, and important, step forward.
Earlier this year, we confirmed our levy approach for 2025-26. Back then, informed by the government’s signal that it was considering making the changes we need, we acted to reduce our 2025-26 levy estimate to £45m. In addition, we included a new provision in our levy rules to give the Board the opportunity to calculate a zero conventional levy if appropriate legislative changes were brought forward, and sufficiently progressed, in the course of 2025/26.
Now that these measures are being brought forward, we’ll closely monitor their progress as the Bill passes through its parliamentary stages. We will take a final decision on the calculation of the 2025/26 levy in line with the new provision in due course and don’t plan to proceed with invoicing until we’ve concluded our decision-making. We intend to work constructively to support policy makers and stakeholders as these measures are considered further. We will keep our levy payers informed of progress and expect to provide a further update to schemes by the end of July.
We continue to recognise the vital importance of balancing both levy payer and member interests. We’ll continue to prioritise supporting the government with the proposed changes to the levy and its fresh consideration of our compensation framework, including pre-97 indexation.
Pension Dashboards
We welcome the provisions intended to enable PPF and FAS compensation data to be made available to members on pension dashboards. We’ve long supported the ambition of pension dashboards to help savers better engage better with their pensions, and for PPF and FAS members to be able to see their data when using dashboards.
Terminal Illness payments
The inclusion of provisions to enable us to make lump sum payments from the PPF and FAS to members with a life expectancy of up to 12 months, increased from 6 months as applies currently, is welcome. This change would mean we could provide lump sum payments more quickly to terminally ill members when they need it most.
|
