Share

Pension fund levy fears eased

Pension fund levy fears eased
News

Pension fund levy fears eased

Finance | Gareth Jones | 1 Mar 2006

Charities fears have been eased over the potentially high levies they may have to pay to the Pension Protection Fund. The fund has been established to pay compensation to members of eligible defined benefit pension schemes, when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover it.

Under the proposals, from 6 April 2006 weaker defined benefit pension funds, based on a Dun and Bradstreet credit rating, will pay a far higher levy than stronger schemes. Charities feared the proposals could be discriminatory because they do not have big reserves and so will be perceived a high credit risk.

A sector working party consisting of directors of finance, CFDG, the Charities Consortium and special advisers, had lobbied on the potentially serious impact of the levy. However, Ian Theodoreson, finance director of Barnardo's speaking on behalf of the working party, said that most charities were achieving good credit scores. For example, National Trust started at 8, but was now closer to 100. "The low scores were initially simply because Dun and Bradstreet hadn't dealt with charities before."

However, he said a worry remained about increases to the levy in future years. "While we think its right that charities should be included, we have argued unsuccessfully that charities should be protected against a potential increase of up to 25 per cent. Charities cannot afford over inflation hits if the levy does increase dramatically.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Tags

Free eNews

Diabetes UK raises £18.6m through Tesco partnership

27 Feb 2015

Tesco employees, suppliers and customers raised over £18m for Diabetes UK between March 2013 and December...

Coffee mornings top list of most popular fundraising events, report shows

26 Feb 2015

Coffee mornings are the most popular ways for supporters to raise money for charity, according to new...

Foundations discuss creating grants map of the UK

26 Feb 2015

Some of the sector’s largest foundations are discussing creating a map of all charitable grant funding...

Jimmy Savile investigations by Barnardo's and Action for Children find 'no evidence' of wrongdoing

27 Feb 2015

Children's charities Barnardo's and Action for Children have released reports saying there is "no evidence"...

Great Ormond Street Hospital charity to become independent of Department of Health regulation

27 Feb 2015

Great Ormond Street Hospital Children’s Charity has begun the process to free itself from being regulated...

Oxfam comms director says politicians are using regulation to silence charities

26 Feb 2015

Oxfam’s director of communications said yesterday that politicians were using regulation to threaten...

Daniel Phelan dies, aged 58

13 Feb 2015

Daniel Phelan, owner and editor-in-chief of Civil Society Media, passed away on Wednesday following a...

LinkedIn launches matching service to bring charity volunteering opportunities to 250,000 members

6 Feb 2015

Charities in the UK will be able to advertise volunteer opportunities to 250,000 LinkedIn members who...

Free guide to Bitcoin donations produced for charities

5 Feb 2015

Two Bitcoin organisations have launched a website and free guide to promote the use of the digital currency...

Join the discussion

 Twitter button

@CSFinance