On the go: Defined benefit pension schemes impacted by the pandemic will be granted a 90-day payment window to pay their Pension Protection Fund 2021-22 levy bill.
This is the second-year schemes and sponsoring employers can apply for the payment extension within 28 days of receiving their levy invoice, the PPF stated.
To apply for an extension, levy payers must complete an online form on the PPF’s website and explain how they continue to be affected by the pandemic. Applicants will also need to commit to paying their bill within 90 days so that the statutory interest can be waived, the lifeboat noted.
David Taylor, executive director and general counsel at the PPF, said: “We know that there continue to be financial challenges for our levy payers, so we’re pleased to be able to continue to support any levy payers impacted by Covid-19 with a 90-day extension to pay their bill.
“We hope that offering this flexible payment option again will give our levy payers some breathing space to cope with their financial commitments in a difficult and changing environment.”
The PPF also noted that schemes or sponsoring employers who need longer than 90 days can make an application under the existing repayment plan process.
The PPF’s levy was set at £520m for 2021-22, which is £100m lower than the previous year, due to the pensions lifeboat’s “strong financial position”.
The lower figure was produced in part to offset the effects of the Covid-19 pandemic, which also led to the PPF publishing only its expectations for the year ahead, rather than for the usual three-year period.
In the policy statement accompanying the final rules, published in January, the PPF said it hopes to be able to return to the multi-year approach from 2023-24.
