UK Pension Protection Fund Moves to Zero Levy Amid Legislative Progress

The UK's Pension Protection Fund (PPF) has announced plans to reduce its levy to zero, citing legislative progress and a robust financial position. Chair Kate Jones emphasized that recent changes in the Pension Schemes Bill have provided the confidence needed for this decisive action. The MOVE aims to offer clarity for defined benefit (DB) schemes and their sponsors as they navigate financial planning.

With a surplus of approximately £14 billion, the PPF is well-positioned to meet pension obligations. Higher interest rates have further strengthened DB schemes by reducing liability valuations. Nearly 5,000 DB schemes are eligible for PPF coverage, collectively holding a net surplus.

The PPF will continue engaging policymakers during the bill's passage and plans to consult industry stakeholders on future levy structures. This strategic shift reflects both legislative momentum and improved funding conditions across the pension landscape.