The Pension Protection Fund (PPF) Zero levy

The Pension Protection Fund exists as an insurance scheme to protect members’ pensions if their employer fails. The levy charge is risk-based.

The PPF now has powers since the Pension Schemes Bill was introduced, to move to zero levy, with the ability to reinstate the it in future years if needed.

The news was welcomed by stakeholders. It signalled another sign of the transformation of the pension landscape, with many schemes now in surplus and claims on the PPF being historically low.

A consultation has been launched on next year’s levy with an intention to maintain this at Zero for 2026/27.

Maintaining a zero levy is dependent on the passage and timing of the Pension Schemes Bill.

The PPF hope to build financial strength through its investment returns.