The Pension Protection Fund (PPF) has confirmed that its levy rules will remain “broadly unchanged” for 2020/21 following a six-week consultation.

The 2020/21 rules will be in line with the proposals consulted on in September 2019.

Its consultation did not propose any significant changes to the rules from the previous three-year cycle, with the PPF saying that respondents supported its overall approach.

The PFF also confirmed that the levy estimate for 2020/21 will be £620m, up by £45m on the amount expected to be collected for 2019/20.

In its policy statement, the PPF outlined that it will allow employers that would otherwise see an increase in levy as a result of GMP equalisation to request an accounting adjustment for those costs.

It also said that it was changing the way it scores smaller companies and those that use the S&P model.

Commenting on the changes, XPS Pensions head of PPF solutions, Emily Sturgess, said: “Sponsors that are showing a loss in their accounts solely due to accounting for GMP equalisation should consider submitting information to the PPF to avoid paying an unnecessarily high levy.

“The PPF has confirmed it is making changes to how it scores smaller companies and those that use the S&P model. Affected schemes should understand any impact on the levy and look to take other actions to mitigate any increase.”

The changes will apply from 2020/21, the final year in the current three-year levy cycle.

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