The Occupational Pension Schemes (Levies) (Amendment) Regulations 2015

Statutory Instruments

2015 No. 84

Pensions

The Occupational Pension Schemes (Levies) (Amendment) Regulations 2015

Made

28th January 2015

Laid before Parliament

4th February 2015

Coming into force in accordance with regulation 1

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 117(1) and (3), 315(2) and 318(1) of the Pensions Act 2004(1).

In accordance with section 117(4) of that Act, the Secretary of State has consulted the Board of the Pension Protection Fund(2).

In accordance with section 317(1) of that Act, the Secretary of State has consulted such persons as the Secretary of State considers appropriate.

Citation and commencement

1.—(1) These Regulations may be cited as the Occupational Pension Schemes (Levies) (Amendment) Regulations 2015.

(2) This regulation, regulation 2 and regulation 3 come into force on 1st April 2015.

(3) Regulation 4 comes into force on 1st April 2016 immediately after regulation 3 ceases to have effect.

(4) Regulation 5 comes into force on 1st April 2017 immediately after regulation 4 ceases to have effect.

Interpretation, revocation and expiry

2.—(1) In these Regulations, “the 2005 Regulations” means the Occupational Pension Schemes (Levies) Regulations 2005(3).

(2) The following are revoked—

(a) regulation 3 of the Occupational Pension Schemes (Levies) (Amendment) Regulations 2007(4);

(b) the Occupational Pension Schemes (Levies) (Amendment) Regulations 2008(5); and

(c) regulation 3 of the Occupational and Personal Pension Schemes (Levies – Amendment) Regulations 2012(6).

(3) Regulation 3 ceases to have effect on 1st April 2016.

(4) Regulation 4 ceases to have effect on 1st April 2017.

Amendment of the 2005 Regulations with effect from 1st April 2015

3.  For regulation 6(2)(7) of the 2005 Regulations (the amount payable) substitute—

“(2) This is the table for the administration levy for the financial year ending with 31st March 2016—

Column 1 Number of members on the reference day	Column 2 Amount of levy calculated by reference to number of members (M)	Column 3 Minimum amount of levy
2 to 11		£36
12 to 99	£3.68 multiplied by M
100 to 999	£2.65 multiplied by M	£370
1,000 to 4,999	£2.07 multiplied by M	£2,650
5,000 to 9,999	£1.57 multiplied by M	£10,350
10,000 or more	£1.09 multiplied by M	£15,700”.

Amendment of the 2005 Regulations with effect from 1st April 2016

4.  For regulation 6(2) of the 2005 Regulations substitute—

“(2) This is the table for the administration levy for the financial year ending with 31st March 2017—

Column 1 Number of members on the reference day	Column 2 Amount of levy calculated by reference to number of members (M)	Column 3 Minimum amount of levy
2 to 11		£42
12 to 99	£4.24 multiplied by M
100 to 999	£3.06 multiplied by M	£420
1,000 to 4,999	£2.38 multiplied by M	£3,060
5,000 to 9,999	£1.80 multiplied by M	£11,900
10,000 or more	£1.26 multiplied by M	£18,000”.

Amendment of the 2005 Regulations with effect from 1st April 2017

5.  For regulation 6(2) of the 2005 Regulations substitute—

“(2) This is the table for the administration levy for the financial year ending with 31st March 2018 and for each financial year after that—

Column 1 Number of members on the reference day	Column 2 Amount of levy calculated by reference to number of members (M)	Column 3 Minimum amount of levy
2 to 11		£49
12 to 99	£4.88 multiplied by M
100 to 999	£3.52 multiplied by M	£490
1,000 to 4,999	£2.74 multiplied by M	£3,520
5,000 to 9,999	£2.07 multiplied by M	£13,700
10,000 or more	£1.45 multiplied by M	£20,700”.

Signed by authority of the Secretary of State for Work and Pensions

Steve Webb

Minister of State,

Department for Work and Pensions

28th January 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Occupational Pension Schemes (Levies) Regulations 2005 (S.I. 2005/842) (“the 2005 Regulations”).

Regulation 6(2) of the 2005 Regulations sets out the amount of the administration levy by reference to the number of the members of the pension scheme. Regulation 3 of these Regulations amends the amount of the administration levy for the financial year ending with 31st March 2016. Regulation 4 further amends that amount for the financial year ending with 31st March 2017. Regulation 5 further amends that amount for the financial year ending with 31st March 2018 and for subsequent years. Regulation 2 revokes earlier amending provisions which are superseded by subsequent amendments and by these Regulations and provides for the expiry of regulations 3 and 4 when those amendments are superseded.

The purpose of the administration levy is to meet the expenditure of the Secretary of State mentioned in section 117(1) of the Pensions Act 2004 (c. 35). Eligible occupational pension schemes pay the administration levy (see regulation 4 of the 2005 Regulations). The administration levy is used to fund administration expenses of the Board of the Pension Protection Fund.

An impact assessment has not been prepared for this Instrument as it has a negligible effect on business and civil society organisations.

(1)

2004 c. 35. Section 318(1) is cited for the meaning it gives to “prescribed” and “regulations”.

(2)

The Board of the Pension Protection Fund is established under section 107 of the Pensions Act 2004.

(3)

S.I. 2005/842.

(4)

S.I. 2007/994.

(5)

S.I. 2008/910.

(6)

S.I. 2012/539.

(7)

Regulation 6(2) was substituted by S.I. 2012/539.