The SPP welcomes proposals from the Pension Protection Fund (PPF) to update the assumptions used for valuations under sections 143 and 179 of the Pensions Act 2004.
However, we have highlighted concerns about the wider implications of changes to the section 179 framework, particularly the introduction of post-retirement increases on eligible pre-1997 PPF compensation. These changes could significantly increase section 179 liabilities and, in turn, lead to substantially higher levies for commercial consolidators, without any corresponding increase in underlying financial risk or reduction in member security.