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03-Jun-08 11:30 [Pensions]
PPF defends itself from criticism The Pension Protection Fund's (PPF) has defended itself against those who have criticised its decision to raise its levy scaling factor.
Last week the PPF raised the scaling factor from 1.6 to 3.77, causing pension sponsors to claim that they would see a 236 per cent rise in levy payments in comparison to what had previously been announced last November, according to a report on Global Pensions.
The chief executive of the PPF Partha Dasgupta admitted that over half of pension schemes would end up paying more, however 32 per cent will pay a levy of 20 per cent or more lower than last year.
"I can understand why consultants will scaremonger, but the fact of the matter is they are skewing this disproportionately so [it seems like] all schemes out there will see a massive spike in their levy bill," said Mr DAsgupta.
He added that it is impossible for everyone's levy to increase by 236 per cent because the PPF is collecting the same levy as it was last year.
Reuters reports that the PPF was set up in 2005 to safeguard benefits for members of final-salary pension schemes whose sponsor firms become bankrupt.
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