Pensions - Articles - The PPF updates on third levy triennium work

 It highlights a number of areas where work is being undertaken to consider whether changes might be appropriate for 2018/19 onwards.

 Key areas are:

 • Investigating the case for using credit ratings, where available, and industry specific scorecards for regulated financial services entities

 • A review of employer segmentation underpinning the model

 • Managing the impact that accounting standard changes (in particular the introduction of FRS102) may have on variables measured currently in the Model.

 David Taylor, General Counsel at the PPF, commented "While the framework adopted for 2015/16 onwards, including the Experian model, is working well, we are grateful to those stakeholders who have already shared their thoughts on the levy rules with us. The PPF-specific model has been broadly popular, as has the web-based portal. The first year’s invoicing using the model has been positive, with a significant drop in appeals. There are clearly areas where we can continue to develop the model to better reflect the risk that some schemes and their employers pose to us. There are also areas like FRS102 where we need to ensure that the levy rules reflect wider changes."

 A formal consultation on proposals for the triennium will follow at the end of the year.

 The PPF intends that the draft levy rules and levy estimate for 2017/18 will be published as normal in the autumn. Reflecting the PPF’s commitment to providing stability and predictability in the levy rules, the update reiterates the intention only to make major changes to the rules as part of the three year cycle. Accordingly, changes for 2017/18 are likely to be limited.