UK - The Pension Protection Fund (PPF) has appointed Oliver Wyman to help develop a new formula for the calculation of the pension scheme levy.
The PPF began a search for consultancy services in December to help create a "fair" levy based on long-term risk, which followed the publication of a consultation in August 2007 on the future evolution of the pension scheme levy. (See earlier IPE article: Consultants to help PPF create 'fair' levy)
A contract notice published today revealed Oliver Wyman was appointed out of six applications, and the firm was awarded the four-month contract in May on a range of criteria, including price, delivery date and competition, but primarily technical merit.
The aim of the consultancy work was to assist the board in creating a fair levy and develop a new formula "consistent with the board's funding strategy and reflecting the contribution of pensions schemes to the long-term risk".
In addition, Oliver Wyman was also instructed to "communicate with stakeholders to capture and address their issues and gain adherence to the new framework".
A spokeswoman for the PPF said: " We have been consulting on the future of the levy for over a year now. Oliver Wyman was appointed earlier on this year to help us inform our thinking on the future development of the levy. The work they did for us has now finished."
However she confirmed the organisation will be "publishing our proposals and consulting on the future of the levy, later on in the year".
The chief executive of the PPF, Partha Dasgupta, confirmed last month he would be stepping down from his role in June 2009, however he noted one of the many things expected to keep him busy before he goes is the consultation on the future of the scheme levy. (See earlier IPE article: PPF's CEO to step down)
The PPF consultation closed on 3 October 2007, but among its proposals the PPF suggested increasing stability by setting a stable levy estimate for the next three years, changing the levy distribution parameters to reduce cross subsidy and to change the date for risk measurements and the submission of data to 31 March of each year.
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