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Companies should act now to influence pensions levy. By Dawn Smith

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2nd Mar 2006
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Companies still have time to influence the measures that will be used to determine the amount of the Pension Protection Fund (PPF) levy, says PricewaterhouseCoopers. The firm is urging companies with UK pension schemes to take action before 31 March to address the amount of levy payable.

Final guidance on the PPF, published on 28 February, confirmed that the levy for the next financial year will be based on the level of the pension deficit, and on the insolvency risk rating from Dun & Bradstreet, on 31 March.

Marc Hommel, PwC pensions partner, said: "It's not too late for companies to positively influence the PPF levy, but companies need to act quickly. There are opportunities to influence risk ratings and levy by, for example, addressing county court judgements, making an additional payment into the scheme to reduce the deficit, and getting paperwork to the PPF correct. Indeed, if a sufficient number of companies take the actions available to them, we could see the levy come in well below the £575 million that the PPF is expecting."

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