The PPF has also proposed bringing the date when insolvency and underfunding risk are calculated, and all data is collected, forward by 12 months to 31 March 2008, and is seeking views on how the levy will evolve, moving from short-term to long-term risk measures to calculate it.

PPF chief executive, Partha Dasgupta, said: We listen carefully to levy payers and we believe this proposal is a positive response to what they have been saying. As well as achieving stability in levy setting, it provides good advance notice of likely bills and enables us to set a levy which is fair and proportionate but still protects the interests of those receiving PPF compensation.”

To take part in the consultation, which closes on 3 October, visit: www.pensionprotectionfund.org.uk