21 December 2006
The UK's workplace final salary pension schemes will have to pay
a total of £675m next year to finance the Pension Protection
Fund (PPF).
The PPF was set up to provide a financial safety net for members of
pension schemes that go bust.
The levy is nearly twice the amount collected from pension
schemes in 2006.
The size of the levy will vary from scheme to scheme, depending
on the size of any deficit and the chances that the scheme will go
bust.
"Last year, we collected less money than we had originally
anticipated because of market movements, improvements in quality of
date, direct action by schemes to reduce their risk," said Partha
Dasgupta, PPF chief executive.
"Going forward we will need to collect a levy nearer our
original estimate," he added.
In 2006 the PPF said it needed to collect £575m, but
eventually settled for £343m.
