In a consultation document released in November, the Pension Protection Fund (PPF) announced a proposed adjustment to the risk-based portion of the levy that it charges UK defined benefit (DB) pension schemes. The new formula will take account of the longer-term deficit risk.
The current formula is calculated as the product of a one-year probability of default and the current underfunding level, multiplied by a so-called 'scaling factor'. "The fault of the (current) formula," said Martin Clarke,
The week on Risk.net, December 2–8, 2017Receive this by email