The PPF published its levy estimate at the end of last year at £575 million, but has said that that figure could be lower if schemes take up incentives to reduce their risk. The PPF has also responded to the December 2005 levy consultation document.

Lawrence Churchill, chair of the PPF, said: “We have been pleased by the [pension] industry’s positive response to our proposals, and would encourage pension schemes to take advantage of the powerful set of incentives announced last year, incentives that if taken up will help reduce risk in the system and lead to lower risk based levies being charged.”

Funds can qualify for incentives in a number of ways including: recognition of contingent assets; inclusion of special deficit funding contributions; a nil levy rate if assets are at least 125% of PPF liabilities; and stepped incentives for schemes funded above 104%.

Full details of the incentives, time frames for responding to the PPF to qualify, and response to the consultation can be found on the PPF’s website. Visit www.pensionprotectionfund.org.uk