A fund designed to protect pension pots in the event of an employer going bust today unveiled a lower than expected increase in its levy due to the tough economic climate.
The Pension Protection Fund (PPF) announced that the pension protection levy estimate for 2013/14 will be £630m, the same aggregate amount that the PPF expects to be collected for the 2012/13 levy year.
The decision was welcomed by the CBI and National Association of Pension Funds (NAPF) as it will take the pressure off businesses with so-called defined benefit schemes.
PPF chief executive Alan Rubenstein said: "We have seen pension scheme funding deteriorate significantly in the last 18 months. Therefore, it should come as no surprise that this level of heightened risk would ordinarily result in a substantial increase in the levy estimate. However, we are realistic and have listened. We know that many employers are still struggling in the continuing economic turmoil. That is why, exceptionally, we have set a levy estimate at similar levels in 2013/14 as they (are) for this year."