The Pension Protection Fund (PPF) has updated its consultation on the long-term future of the levy, and has announced that it will establish a group to help develop its proposals.

A steering group, comprising of senior business figures and others, will look at formulating revised proposals for a new levy formula, and will be backed up by a group of technical experts who will help explore any practical issues.

The PPF, which proposes to implement the new plans in 2012/13 at the earliest, made the proposals in response to industry commentary on the first consultation in November.

"We remain committed to developing a levy which is fairer to levy payers and which more accurately reflect the long-term risk that all levy-paying pension schemes pose to the PPF, no matter how large or small," said Alan Rubenstein, chief executive at the PPF.

"But we do want to address the issues raised by many of those who responded to our consultation. That is why I have decided to invite senior industry figures to help us re-examine these issues and formulate revised proposals."

Rubenstein added that the group will not be asked to achieve agreement on current proposals, but to look at issues raised and come up with new ideas. Revised proposals will be announced in early 2010.

The National Association of Pension Funds (NAPF) has voiced its support for the decision: "We are pleased the PPF has listened to the NAPF and are now reviewing their plans for the levy," commented Joanne Segars, chief executive.

"We welcome, therefore, the PPF's announcement that they will involve the pensions industry in a steering group aimed at ensuring the levy is fair both in principle and in practice."

- Pensions Age July 2009

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