Pensions - Articles - PPF will raise a Fraud Compensation Levy in 2017/18

 The PPF, which runs the Fraud Compensation Fund (FCF), has been notified of a number of possible claims which may come to the FCF in the next few years. Therefore, with forward planning in mind and to smooth the impact to schemes over time, the PPF is raising a levy of 25p per member – the same as in 2012/13. The levy is expected to raise around £5 million in total.

 The FCF pays compensation to eligible work-based pension schemes – including defined contribution (DC) – where the employer is insolvent and the scheme has lost out due to offences involving dishonesty.
 
 The levy is collected by The Pensions Regulator alongside its general levy. The collection process began on 1 April.
 
 More information about the Fraud Compensation Fund can be found here.