PPF risk levy set at £575m but allows 'contingent assets'

In its final proposals for the 2006/07 pension protection levy, the PPF has set out details of how it will recognise contingent assets, such as parental guarantees and letters of credit from third parties, which should help reduce a company’s levy, although a total of £575m is needed from company pension schemes to fulfil the funding requirements. The industry now has just over a month to respond to the details of the contingent asset proposals, with responses requested by January 23. Other key elements of the proposals, which have taken into account industry responses from the July con...