On the go: The Pension Protection Fund is waiving the interest charge on its levy payment plan to help schemes or sponsoring employers struggling due to the economic impact of coronavirus.
In an update published on its website on Tuesday, the pensions lifeboat stated that it has always been possible to apply for a payment plan to help spread the cost of the levy. However, interest would be charged to those schemes who took up the option.
Due to legislation, the PPF is not allowed to extend the levy invoice payment terms, it stated.
But if the sponsor has been impacted by Covid-19 and can commit to paying the levy invoice within 90 days, the lifeboat can waive the interest on the late payment if the relevant criteria are met, it noted.
Companies will have to fill in an online Covid-19 notification form once they receive their levy invoice, explaining how the pandemic has negatively impacted their scheme or business, and that as a result the sponsor will have difficulty in paying the levy within 28 days.
The PPF also announced that levy payers will have the option to receive their invoice electronically, starting with the 2020-21 invoices that will be issued this autumn.
