BN80 - The New Calculation of the Risk-Based Levy to Apply From 2012/13

Briefing Note

BBS Briefing Note 79 summarised the new framework applying for the calculation of Pension Protection Levies from 2012/13, as announced by the PPF in May 2011.
There are several important changes to be made to the levy calculation under the new framework. Two of the more interesting changes relate to the calculation of underfunding risk used in the risk-based element of the levy, namely smoothing the impact of market volatility on the funding position used and stressing the funding position to model the underlying investment risk posed by a scheme.
This BBS Briefing Note provides greater detail on these two aspects of the new framework.

Download (PDF document, 2.3 MB)