Changes to scheme valuation assumptions, as announced by the Pension Protection Fund (PPF) in July, will most likely benefit the same type of schemes as last year's changes, says Barnett Waddingham.

The actuarial and consultancy firm said schemes with younger membership profiles, and those with assets just above the PPF's threshold, will benefit from changes to s179 and s143 - exactly the same schemes that profited from 2008's amendments.

Some schemes, Barnett Waddingham said, could see their levy fall by around 80 per cent if the changes come into play in time for this year's levy calculations, although this would therefore be countered by an increase in other schemes' payments.

A spokesperson for the PPF told Pensions Age that in part, Barnett Waddingham's claims are true: "Yes, these changes will have a slightly larger effect on those with younger membership profiles. For insolvencies after the new basis becomes effective, schemes which would have been close to 100 per cent funded on the current s143 basis may find they are over 100 per cent funded and have the opportunity to try to buy-out in the market."

Paul Jayson, partner at Barnett Waddingham, also said that the changes would merely serve to shift the money within the levy around. "Although the new assumptions would be expected to reduce a scheme's 'protected liabilities', the PPF has a fixed amount that it needs to raise in levies each year and so these changes will only serve to reallocate, rather than reduce the levy. Whether a scheme gains or loses depends on the structure of the PPF's model. The bigger issue is the impact of the recession, which has meant several large schemes will now no longer be paying the levy. This will increase the burden on all schemes that remain eligible to pay it."

The PPF responded to this with a statement relating to the timing of the levy announcements: "Changes to the assumptions would affect the amount allocated between schemes once the overall amount we wish to collect is fixed. The levy quantum for 2011/2012 (the first year to be affected by this change of basis) will be confirmed in autumn 2010."

The PPF also reminded Pensions Age that they are under an obligation to keep their basis in line with insurance company pricing, which it said is fair to members of schemes in assessment and who might be able to buy out benefits that are higher than the compensation they provide. It is also, the PPF said, fair to levy payers as the s179 deficit must be a reasonable estimate of the true level of underfunding risk that the scheme poses to the PPF.

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