PPF should not be funded by levy alone, says survey

Almost three-quarters of pension scheme trustees and advisers believe that the Pension Protection Fund (PPF) should not be funded solely by a levy on pension schemes without any government funding, says a survey by actuarial firm Barnett Waddingham.

The majority of pension professionals also think the government needs to step up to the mark and become the ultimate guarantor of the PPF.

The existence of the PPF is supported by 86% of respondents, while 84% of trustees and 60% of advisors believe the government should stand behind the PPF as the ultimate guarantor.

The research also showed that 23% of trustees and 45% of advisors have clients that think that the PPF levy could seriously jeopardise the future existence of the employer associated with their scheme.

Nick Griggs, a partner at Barnett Waddingham, said: “There appear to be some concerns about the way the PPF is funded. Its ever-increasing liabilities are becoming an unbearable burden on the declining number of eligible schemes.”

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