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UK pensions weekly: PPF levy cut and flexibility; DB surplus extraction reforms; Investment Review timetable; Ombudsman mirror benefits ruling; HMRC tax code changes; PLSA stewardship guidance; FCA pensions dashboards connection

Published on: 30 January 2025

Published by a LexisNexis Pensions expert
Legal News
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In this issue:

  • Pension Protection Fund
  • Funding, surplus and investment
  • Members and benefits
  • Taxation
  • Scheme governance
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Pension Protection Fund

PPF’s 2025/26 levy estimate reduced to £45m while government proposes to legislate for greater levy flexibility

The Pension Protection Fund (PPF) issued its policy statement and 2025/26 levy rules on 30 January 2025, confirming an agreed cut in the 2025/26 levy estimate to £45m—down from the £100m figure consulted on between 12 September and 23 October 2024—delivering the lowest levy ever. The PPF indicates that virtually all schemes—99.7 per cent—are expected to pay a reduced PPF levy in 2025/26, with the average levy as a share of liabilities falling from 0.011% to 0.006%. Responding to industry feedback, and following engagement between the PPF and the government, the government has also formally announced that it is considering measures to give the PPF greater flexibility, allowing it to reduce further the levy it collects from schemes...

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