The Pension Protection Fund (PPF) has raised the fraud compensation levy for the first time since 2012 as it prepares for an expected swell in claims.
The lifeboat fund, which runs the Fraud Compensation Fund (FCF), said it has raised the levy by 25 pence per member as it has been notified of "a number of possible claims" which might hit the FCF over the "next few years".
The additional funds will be collected from both defined benefit (DB) and defined contribution (DC) schemes as the FCF pays out to both types in an employer insolvency event where the scheme has been negatively impacted by dishonesty.
The PPF estimated the increased charge would help it raise around £5m over the next year. The levy was last raised in the 2012/13 financial year, when it also rose by 25 pence per member.
The charge is collected by The Pensions Regulator (TPR) alongside the general levy, and the higher amount took effect on 1 April.
It comes a month after the PPF confirmed it would introduce a new levy for schemes without a substantive sponsor for the 2017/18 year.
The lifeboat fund said the general methodology used for calculating levies was not appropriate for these schemes, and so its new levy is based on the pricing model for put options.
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