Pension Protection Fund levies set to rise in 2011

Charity Finance Directors' Group issues warning

Charity members of the Pension Protection Fund could be paying higher levies from next April, a member of the Charity Finance Directors' Group committee on pensions has warned.

Kevin Barnes, finance director of Barnardo's, said the PPF, which provides compensation to members of defined-benefit schemes if their employers become insolvent, had altered the way it calculated organisations' insolvency risks.

He said the change meant the PPF's 'insolvency rating' - the likelihood of an organisation going bankrupt - had tripled for the lowest-risk organisations, including most charities. As a consequence, their contributions were likely to increase, he said.

"Most charities are very safe, so these changes will affect them adversely," he said.

A spokesman for the PPF confirmed that it had changed the way it calculated the risk of insolvency, but said that total contributions from all members of the fund would not change.

Many charities in the scheme would not pay higher levies, he said.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners

Markel

Expert Hub

Insurance advice from Markel

Cyber and data security - how prepared is your charity?

With a 35 per cent rise in instances of data breaches in Q2 and Q3 last year, charities must take cyber security seriously

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now