Citation, commencement and interpretation1
1
This Order may be cited as the Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling and Compensation Cap) Order 2018.
2
It comes into force—
a
for the purposes of this article and article 2, on 14th March 2018,
b
for the purposes of article 3, on 31st March 2018, and
c
for the purposes of articles 4 and 5, on 1st April 2018.
3
In this Order, “the Act” means the Pensions Act 2004.
The earnings percentage2
For the purposes of section 178(3)(a) of the Act (the levy ceiling), the percentage by which it appears to the Secretary of State that the general level of earnings has increased during the review period3 is 1.7%.
The levy ceiling3
For the purposes of section 177 of the Act (amounts to be raised by the pension protection levies), the levy ceiling for the financial year beginning on 1st April 2018 is £1,024,372,330.
The compensation cap4
The amount specified for the purposes of paragraph (a) of the definition of “the standard amount” in paragraph 26A(7) of Schedule 7 to the Act (pension compensation provisions – meaning of “the compensation cap”) is £39,006.18.
Revocation5
The Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling and Compensation Cap) Order 20174 is revoked.
Signed by authority of the Secretary of State for Work and Pensions.