Levies

Funds are raised through compulsory levies on all schemes that are eligible for the Pension Protection Fund.

In addition, when the Pension Protection Fund assumes responsibility for a scheme, it will also take in the remaining assets of that scheme to help pay towards any compensation.

For the first year (2005-6), an initial levy, based on the number and status of members in a scheme, will be used. Additionally, an administration levy will be used to pay for the initial start up costs and ongoing administrative costs of the Pension Protection Fund. The initial start up costs will be collected over a three year period

From 2006-7, the pension protection levy will be set by the Pension Protection Fund and will be based on a combination of scheme and risk-based factors.