The Pension Protection Fund (PPF) has announced that it has partnered with Aviva, who will provide a defined contribution (DC) discharge solution. The PPF is only able to pay defined benefit (DB) pension benefits. However, some pension schemes, known as hybrid schemes, have both a DB and DC element to them. When these pension schemes enter the PPF dueof employer insolvency, it cannot transfer the DC element of the schemes. When pension schemes enter the PPF assessment period, the DC pension benefit should be quickly taken on by a third-party provider to prevent delay and ensure certainty. Therefore, the PPF is partnering with Aviva, who are providing a Master Trust solution.

The Pension Protection Fund (PPF) has announced that updated retirement factors will take effect from 1 October 2025, impacting how member benefits are calculated. These factors, which influence the value of lump sums and annual compensation, are reviewed annually to reflect changes in financial markets and life expectancy. The update will affect members who retire on or after the implementation date, while those who retire earlier will continue to be assessed under the current, generally more favourable, terms. Members of the Financial Assistance Scheme and those already fully retired will not be affected by the changes. The PPF  cautions that its ‘Benefit Modeller’ tool will not reflect the new factors until the changes come into force. However, the PPF has introduced an online ‘Quote and Retire’ tool, available from 1 July 2025, to help members aged 55 and over compare their retirement options under both sets of factors.

The Pension Protection Fund (PPF) has announced that no conventional levy will be charged for 2025/26. This decision follows the introduction of the Pension Schemes Bill, which recently passed Commons Committee stage and includes measures granting the PPF greater flexibility to set the levy. Exercising the provision built into this year’s levy rules, the Board has opted to reduce the levy to zero, while retaining the ability to reinstate it in future if required.

The Pension Protection Fund (PPF) has provided further clarification on its methodology for calculating scheme funding data. Utilising enhanced asset allocation data from The Pensions Regulator (TPR), the PPF now applies a wider range of market indices in its asset roll-forward calculations. This granular data reveals that schemes were better hedged against the Liability-Driven Investment (LDI) crisis than previously assumed, resulting in less significant funding level improvements following the gilt yield spike. The PPF has also refined its approach by considering cashflows when estimating asset and liability values, aligning with the Office for National Statistics (ONS) and TPR. Additionally, the PPF notes a reduction in the universe size over the past year, partly attributed to risk transfer deals. These developments reflect an industry-wide learning process and provide a more accurate picture of LDI investments held by UK defined benefit (DB) schemes.

The Pension Protection Fund (PPF) has launched a consultation on its proposed approach for the 2026/27 PPF levy. It proposes to set a zero levy for conventional schemes, dependent on the passage of the levy measures in the Pension Schemes Bill, and to continue charging a levy for Alternative Covenant Schemes (ACSs) with refinements and a wider review of the ACS levy methodology to reflect market developments. The PPF considers its reserves and expected future growth sufficient to support a zero levy but will continue to review funding conditions and retains the option to reinstate a levy if needed. Alongside this consultation, the PPF has also published the draft proposed changes to the Determination, Transformation Appendix, ACS Appendix and the ACS Guidance. The consultation closes on 5 January 2026.

The Pension Protection Fund (PPF) has opened a consultation on proposed revisions to the assumptions used for valuations under sections 143 and 179 of the Pensions Act 2004. The assumptions are used to estimate the cost of securing PPF compensation levels with an insurer and support section 143 valuations during PPF assessment periods, as well as section 179 valuations used for a range of purposes, including historically for PPF levy calculations. The consultation closes at 5.00 pm on 16 September 2026 and the PPF plans to publish its final decision in October 2026, subject to the outcome of the consultation.

Pensions analysis: The Deputy Pension Protection Fund Ombudsman (PPFO) has rejected a complaint that the reconsideration committee of the Pension Protection Fund (PPF) had failed to apply pension increases to a member’s pre-April 1997 pension. Martin Scott of gunnercooke LLP looks at the decision.

The Pension Protection Fund (PPF) has announced it will postpone its decision on the 2025/26 levy rules until January 2025, following stakeholder consultation. The PPF Board has been working closely with the Department for Work and Pensions, considering options to potentially reduce the levy further before any legislative changes are enacted. However, the PPF emphasises that legislative change is needed to provide greater flexibility in levy-setting, including the ability to eventually set a zero levy. The current Pensions Act 2004, which places a legal limit of 25% on the extent to which the levy can be increased from year to year, constrains the PPF's ability to reestablish a material levy in a reasonable time frame should a funding crisis arise, and prevents the PPF from reinstating a levy should it reduce it to zero. The news is welcomed by the Pensions and Lifetime Savings Association.

The Pension Protection Fund (PPF) has issued its response to the Pension Schemes Bill introduced on 5 June 2025, which details new measures affecting the PPF and Financial Assistance Scheme (FAS).  Notably, the Bill provides for increased flexibility to further reduce the conventional PPF levy, including a potential reduction to zero if forthcoming legislative changes materialise in 2025–26. This follows the PPF’s confirmed reduction in the conventional PPF levy on 30 January 2025, when it announced that the 2025-26 levy was now estimated at £45m, but with final decisions on the levy pending the progress of these measures through Parliament. Additional important measures in the Bill the PPF welcomed included the integration of PPF and FAS compensation data into pension dashboards to enhance engagement among savers, and an extension of the terminal illness payment qualification—from a requirement of a six-month to a 12-month life expectancy.

The Pension Protection Fund (PPF) has launched a consultation on its proposal to allow actuaries to use a bespoke discount rate assumption when conducting a section 143 valuation of smaller schemes. The new proposal will provide additional flexibility and the ability for s 143 valuations to better reflect buy-out pricing for smaller schemes, while minimising disruption and additional burden on actuaries and the schemes they advise. The PPF seeks views from actuarial professionals and industry stakeholders on this approach and its suggestion to introduce this change from 31 May 2024. The consultation will close on 6 May 2024.

The Pension Protection Fund (PPF) has announced its 2025-28 strategy while marking its 20th anniversary. The strategy outlines plans to review key areas of governing legislation, including levy frameworks and indexation levels. The PPF, which currently manages £32bn in assets and protects £1tr in defined benefit pension liabilities, aims to integrate with pension dashboards and enhance operational efficiency. Since 2005, the PPF has protected over 500,000 members and transferred more than 2,000 pension schemes, paying out £10bn in compensation to date.

The Pension Protection Fund (PPF) has announced that it will not charge a PPF levy to conventional defined benefit schemes for the 2026–27 levy year. This is the second consecutive year in which no levy will be imposed on these schemes. The PPF confirmed that the decision follows its levy consultation and stated that it will publish its policy statement and final levy rules before the end of the current financial year. It will continue to apply a levy to Alternative Covenant Schemes, which is expected to remain low and proportionate to the risks presented. Schemes must still complete a full Annual Scheme Return via Exchange, including section 179 valuations and asset‑backed contribution information, but will no longer need to provide voluntary data previously submitted solely to obtain levy reductions or documentation that was previously supplied directly to the PPF. The PPF also confirmed that its D&B insolvency risk portal will close from 1 April 2026 and advised schemes to download any required information by 31 March 2026.