Pension Protection Fund Levy Mitigation
For many employers the Pension Protection Fund Levy is a significant expense. The risk based levy takes account of both the funding of the scheme on a Section 179 basis and the likelihood of employer insolvency.
Although the levy falls on the trustees it is normally passed directly on to the employer so it is they who have the greatest interest in reducing it.
Employers can take a number of actions to reduce the levy payable including
- Improving the Dun & Bradsheet failure score – we can provide advice on measures that may be taken to reduce the score
- Use of “Contingent Assets” e.g charges over assets, money in escrow, parent company guarantees
- Providing Deficit Reduction Certificates and out of sequence Section 179 valuations where appropriate
Spence & Partners can advise on all aspects of Levy Mitigation which should include performing detailed checks on the Levy invoices once received as mistakes are not unknown.