The Pension Protection Fund (PPF) has confirmed that its 2013/14 pension protection levy will be £630m, as originally proposed.

The PPF also confirmed that it will reduce the levy scaling factor from 0.89 to 0.73, and the scheme-based levy multiplier from 0.000085 to 0.000056, to raise this amount. This means that fewer schemes will have their levy capped. The other rules used to set the levy will remain the same, except for a relaxation in the requirements for a guarantee from a bank, or from a custodian, so that in future an A- credit rating will be sufficient.

Along with the levy rules, it has updated guidance for putting in place contingent assets following informal consultation with stakeholders, to help schemes know what to consider when planning to use guarantees as contingent assets.

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