PPF final decision on 2025/26 levy on hold as it monitors progress of Pension Schemes Bill

The Pension Protection Fund (PPF) has welcomed the inclusion of provisions in the Pension Schemes Bill 2024-25 that will remove restrictions in the Pensions Act 2004 that prevent the PPF reducing the risk-based levy to zero.

The PPF's levy determination and rules for the 2025/26 financial year, published in January 2025, include a provision that enables the Board to calculate a zero levy if appropriate legislative changes are brought forward and sufficiently progressed during 2025/26.

The PPF states that it will monitor the progress of the Bill as it progresses through Parliament and will take a final decision on the calculation of the 2025/26 levy in line with the new provisions in due course. The PPF confirms that it will not proceed with invoicing until the matter has concluded. A further update will be provided by the end of July.

The PPF also welcomed measures to make PPF and Financial Assistance Scheme (FAS) compensation data available on pension dashboards and to allow the PPF to award lump sum payments to terminally ill members with a life expectancy of up to 12 months (increased from six months as applies currently).