Pension Protection Fund makes plans to become self-sufficient by boosting funding target

The Pension Protection Fund (PPF), which helps insolvent firms safeguard employee pension schemes, is making plans to avoid a funding shortfall. Currently, the PPF is dependent on the levy that companies with final salary schemes pay the fund each year to cover its payment quota. However, experts warn that as more firms close their defined benefit schemes to take up cheaper defined contribution funds, the levy will reduce considerably.