Special contributions won't reduce PPF levy

Figures from the Office of National Statistics (ONS) reveal in Q1 2006, employers paid over £12bn into pension schemes, compared to just £1.5bn of contributions by employees. This means employers are contributing eight times more than employees pay into their pensions, with the biggest increase in special contributions. Although consultants Watson Wyatt suggest the increase will not necessarily reduce PPF levies, as it is the most secure companies which are making the extra effort. In its quarterly report on ‘Investment by insurance companies, pension funds and trusts’, the ONS reveal...