PPF unveils levy calculation proposals

The lifeboat fund has unveiled proposals to use average measures for both under funding and insolvency risk, a move aimed at reducing volatility of levy payments. This should, in theory, lead to a smoothing of payments over the economic cycle, preventing spikes based on a snapshot measurement of risk having a "disproportionate affect" on a scheme's levy bill. The levy will then be fixed for three years beginning in 2012/13 - although this could be reviewed in "exceptional circumstances". The new levy formula will also focus more on factors in the levy payers' control rather than th...