Pension Trust dismayed by huge protection bill

Charity pension manager the Pension Trust has been hit by a bill increase of £850,000 from market insurer the Pension Protection Fund.

The trust said the increase was more than twice as large as originally suggested by the PPF, which was set up in 2005 to protect pension holders whose employers go bust.

The increase brings the trust's total bill to £1.9m for the year ahead.

The PPF, which levies money from pension providers that can claim from it, calculated its levy for the year 2008/2009 using a new method.

Initial estimates under the new method in November proved to be less than half the final amount.

The trust said it was disappointed that the final figure was so different from initial estimates.

"We accept that the provisional figure carried a caveat, but we are dismayed that the PPF could get this so wrong," said Logan Anderson, head of customer relations at the trust.

He said the PPF had ignored the fact that charities carry a lower risk of insolvency than commercial organisations, and claimed the levy was little more than "a charitable donation" to other pension providers.


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