06 December 2006
The Pension Protection Fund (PPF) has issued the following press
release:
"The Pension Protection Fund has published its consultation
document on whether to include investment strategy as a separate
risk factor in the risk based levy.
The document provides an analysis of the impact of introducing
investment risk as a separate risk factor. Findings include:
. The majority of the schemes' investment strategies are broadly
similar
. As a result, just over 3% of the levy would be reallocated as
a result of taking investment risk into account as a separate risk
factor
. The cost to pension schemes of introducing investment risk as
a risk factor would be disproportionate to this reallocation.
The document sets out the Board's initial view that it is
unlikely to be appropriate to introduce an investment risk factor
into the risk based levy at the current time, but that it will be
important to continue to monitor key trends that affect the impact
of investment risk on the risks individual pension schemes pose to
the Pension Protection Fund.
The consultation, which commences today, will run for eight
weeks until 29 January 2007."
