Pensions - Articles - The PPF’s sting in the tail – PwC comments

 Julia Dickson, partner in PwC’s pensions credit advisory practice, said: 

 “Many schemes will welcome the stability brought by the few proposed changes and the transparency in how the PPF levy is calculated. Others face the prospect of a significant levy bill landing in the near future.

  

 “The PPF now believes that many schemes have wrongly benefitted from a reduced levy, having now discovered the scheme is not legally Last Man Standing (LMS).

  

 “This follows the PPF's recent requirement for LMS schemes to seek legal advice on their status under the Trust Deed and Rules, specifically that there is no requirement or discretion by the trustees to segregate assets on cessation of the participation of an employer.

  

 “This means many schemes could be landed with invoices for back payments, raising many millions of pounds for the PPF. For LMS schemes, getting a legal opinion on the scheme structure now seems more vital than ever.

  

 “For the rest of the PPF universe, the levy framework for the 16/17 levy year will remain broadly unchanged, with those few changes proposed focussed on simplifying the reporting requirements on schemes.”