News: PPF levy valuations could cost oe20m.

Pensions Week, September, 2005

Pension Protection Fund (PPF) levy calculations will result in unnecessary costs, according to Mercer Human Resource Consulting (MHRC).

The consultant argued that companies will be forced to incur high administrative costs to achieve a fair PPF levy next year as employers will have to pay for major actuarial valuations to gain credit for any extra contributions made since the last valuation.

MHRC has written to the chairman of the PPF, Lawrence Churchill, for a change in the administrative process.

If a quarter of schemes opted for a new valuation, which costs around GBP10,000, the total cost to the industry is GBP20m, MHRC said. If the valuations were not carried out, the total cost as a result of higher PPF risk-based levies could be as high...

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