PPF ruling implications

Jul 30, 2010

In calculating the Pension Protection Fund (PPF) levy that scheme Trustees must pay each year, the PPF relies upon data submitted to the Pensions Regulator. 


It is the Trustees’ responsibility, even though it is typically delegated to their advisors, to keep the information submitted up to date. The PPF takes a cut of the data as at 31 March each year and, if the data is incorrect, it is likely to result in an incorrect levy being charged.

A set of Trustees (at the Revvo Castor Company Limited Retirement Benefits Scheme) has challenged its levy, stating that it failed to take into account a company restructuring with the result being that the sponsoring employer will be put into financial difficulties. 

The PPF Ombudsman has reviewed the case and his judgement is that the levy will stand as issued, the reason being that the PPF has correctly calculated the levy on the information supplied and that no decision maker (i.e. the PPF) has made a mistake or acted in a perverse way.

This episode highlights the need for Trustees and sponsoring employers (who ultimately have to meet the levy) to be aware of the data that needs to be submitted and to keep it up to date