Thousands of employers could see substantial rises in levies paid to the Pension Protection Fund as Covid-19 prompts a wave of business failures, the UK industry lifeboat scheme has warned.
Roughly 5,500 corporate pension schemes pay annual levies to the PPF, which pays compensation to members of defined benefit plans where the sponsoring employer has been declared insolvent.
The PPF has signalled a substantial rise in levies in 2022/23 after its analysis suggested that corporate insolvencies in 2020/21 might be twice the level of 2019.
Although current insolvency rates remain low, our view is that this reflects the impact of government support schemes, said the PPF in a consultation document published on Tuesday.
As these come to an e…
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