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When the UK government set up the Pension Protection Fund (PPF) in April this year to act as a safety net for pension schemes that become insolvent, it was lambasted for exacting a flat-rate levy from corporate sponsors. The critics argued a flat-rate approach offered no incentive for prudent management and could result in well-managed funds subsidising badly managed ones, as the scheme required all funds to pay a similar levy but only plans linked to less well-managed companies were ever likely

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