risk-based levy

risk-based levy
The most significant of the levies that the Pension Protection Fund (PPF) may raise to fund its operations. The risk-based levy forms part of the pension protection levy. It is calculated according to the PPF's assessment of two factors:
• The risk the sponsoring employer will become insolvent.
• The scheme's underfunding risk.
By law the risk-based levy must comprise no less than 80% of the total pension protection levy. See also scheme-based levy.
Related links
multi-employer scheme (multi-employer pension schemes)

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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