Executives at the U.K.'s Pension Protection Fund will begin talks with pension industry representatives in the next month to consider including investment strategy as a risk factor when calculating plan sponsor levies paid to the fund, the U.K. equivalent to the PBGC, said Lawrence Churchill, PPF chairman.
If investment strategy is to be included in calculating plan sponsor levies, it wouldn't be implemented for at least two years, Mr. Churchill said today in London addressing delegates at the annual conference of the National Association of Pension Funds.
So far, 73 pension plans with collective liabilities of £2 billion ($3.72 billion) have been assessed for possible inclusion in the PPF since it was launched in April 2005. The initial assessment period prior to rescue by the fund takes around one year, and it is unclear at this stage how many of those plans will be put in the fund.
The PPF will announce the level of fund assets in the fall, and how they will be invested, added Mr. Churchill.