The most significant of the levies that the Pension Protection Fund (PPF) (www.practicallaw.com/7-205-4059) may raise to fund its operations. The risk-based levy forms part of the pension protection levy (www.practicallaw.com/4-206-7954). It is calculated according to the PPF's assessment of two factors:
The risk the sponsoring employer will become insolvent.
The scheme's underfunding risk.
By law the risk-based levy must comprise no less than 80% of the total pension protection levy. See also scheme-based levy (www.practicallaw.com/3-206-1995).