The Pension Protection Fund (PPF) has set out details of how levy payers can apply for an extension of levy payment terms.

The levy invoice is normally payable within 28 days of receipt. The PPF cannot routinely extend levy payment terms but has announced that those financially impacted by COVID-19 may apply for an extension of the payment terms. The PPF states that it cannot fully assess whether interest can be waived until the levy has been paid, but its policy intent is to waive interest on late payment provided the levy invoice is paid within 90 days.

Those who wish to apply for an extension of payment terms will need to complete an online notification form within 28 days of receiving the levy invoice, explaining how COVID-19 has negatively impacted the scheme or business. The PPF will not accept applications received later than this.

Separately, the PPF has announced that levy payers will be able to elect to receive their levy invoice electronically, starting with the 2020/21 invoices to be issued this autumn. Levy payers will need to consent to receiving an electronic invoice.

For more on the levy, see Practice note, Pension Protection Fund: levies.

Sources: PPF: Need help paying this year's levy invoice? (7 July 2020), PPF: Apply for a COVID-19 extension of terms and PPF: Introducing electronic levy invoices (7 July 2020).