Risk-based levy

Resource type: Glossary item

Status: Maintained

Jurisdiction: United Kingdom

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).

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Resource ID: 6-206-1994
Products: IP&IT, PLC Glossary, PLC Magazine (UK), PLC UK Commercial, PLC UK Construction, PLC UK Corporate, PLC UK Dispute Resolution, PLC UK Employment, PLC UK Environment, PLC UK Finance, PLC UK Law Department, PLC UK Pensions, PLC UK Property, PLC UK Public Sector, PLC UK Share Schemes & Incentives
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Topics

Funding and Investment: PensionsFunding and Investment: Pensions (http://dispute.practicallaw.com/1-205-7956)
Pension Protection FundPension Protection Fund (http://dispute.practicallaw.com/6-379-8238)
Winding-up and Insolvency: PensionsWinding-up and Insolvency: Pensions (http://dispute.practicallaw.com/5-205-7959)

Practice note: overview

Pension Protection Fund: overview Pension Protection Fund: overview (http://crossborder.practicallaw.com/topic7-205-4460)

Practice notes

Contingent assets: recent market practice Contingent assets: recent market practice (http://crossborder.practicallaw.com/topic5-206-7963)
How schemes can reduce their risk-based levy How schemes can reduce their risk-based levy (http://crossborder.practicallaw.com/topic3-385-0794)
Multi-employer pension schemes Multi-employer pension schemes (http://crossborder.practicallaw.com/topic4-206-0962)
Pension Protection Fund: levies Pension Protection Fund: levies (http://crossborder.practicallaw.com/topic8-219-9962)
Using contingent assets Using contingent assets (http://crossborder.practicallaw.com/topic9-206-7961)

Checklists

Using contingent assets: issues for employers: checklist Using contingent assets: issues for employers: checklist (http://crossborder.practicallaw.com/topic7-364-4962)
Using contingent assets: issues for trustees: checklist Using contingent assets: issues for trustees: checklist (http://crossborder.practicallaw.com/topic5-364-4963)

Glossary

Administration levy Administration levy (http://crossborder.practicallaw.com/topic6-206-3988)
Pension Protection Fund (PPF) Pension Protection Fund (PPF) (http://crossborder.practicallaw.com/topic7-205-4059)
Pension Protection Fund Ombudsman levy Pension Protection Fund Ombudsman levy (http://crossborder.practicallaw.com/topic8-206-3987)
Pension protection levy Pension protection levy (http://crossborder.practicallaw.com/topic4-206-7954)

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