Having engaged with the PPF as well as former and current Pensions Ministers, it now looks as though the SPP recommendations are going to be implemented with the Department for Work & Pensions today announcing that it is working towards delivering the desired legislative change and the PPF confirming a reduction in their annual levy from the proposed £100m to £45m, with the potential for a reduction to £0 based on legislative progress.
Chris Ramsey, Chair of the SPP DB Committee, said: “As we have often said, if a legislative change can be secured in the 2025 Pensions Bill, this would mean pension schemes would no longer have to bear an unnecessary multi-million pound annual cost, and this money could instead be used to help members, employers and the wider economy. We are not quite there yet but today’s announcements from the PPF and DWP represent great strides in the right direction and are very much welcomed by the SPP.”
Kate Jones, PPF Chair, said: “We warmly welcome the government’s intent to give us greater flexibility to reduce the levy. Levy payers have long made a vital contribution to the PPF’s funding. We ultimately don’t want to charge levy payers any more than we need. This positive announcement is an important step towards that end goal.”
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