The Pension Protection Fund (PPF) published its final levy rules for 2024/25 on 14 December 2023.
The key points are:
- the PPF aims to collect a total levy of £100 million for 2024/25, compared with £200 million in 2023/24. This will be the PPF’s lowest ever levy;
- about 99% of defined benefit schemes are expected to see a lower levy in 2024;
- there will be minimal changes to the levy methodology this year.
The legislation surrounding the levy provides that the levy cannot rise from one year to the next by more than 25%. As the levy reduces, so the chance of adverse experience leading to a need for an increase in excess of 25% grows. The PPF has been working closely with DWP on this and DWP have agreed to revisit the legislation as soon as parliamentary time allows.