The Occupational Pension Schemes (Levies) Regulations (Northern Ireland) 2005

Explanatory Note

(This note is not part of the Regulations.)

These Regulations impose the administration levy, the initial levy and the PPF Ombudsman levy provided for in Articles 103, 157 and 191 respectively of the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”).

Regulation 1 provides for citation and commencement and regulation 2 provides for interpretation.

Regulations 3 to 7 make provision for the imposition and payment of the administration levy and the PPF Ombudsman levy. They also make general provision as to how the amount of those levies is to be determined and the times at which they are to be paid. Regulation 4(4) provides that no PPF Ombudsman levy is payable for the financial year ending with 31st March 2006. Regulation 6 specifies the rate at which the administration levy is payable for that financial year.

Regulations 8 to 11 make provision for the imposition and payment of the initial levy. They also make provision as to how the amount of the levy is to be determined and the time at which it is to be paid.

Regulation 12 provides that, while generally schemes that are only eligible schemes for part of the levy period are only liable for a proportionate part of the levy, there is no reduction in the initial levy if the scheme ceases to be eligible during the initial period.

Regulation 13 introduces Part IV of the Regulations which makes general provision relating to the administration levy, the PPF Ombudsman levy and the initial levy.

Regulation 14 makes provision for the apportionment of levy payments between the levies where it is not apparent which levies a payment relates to, and enables apportionment to apply also where payments may relate to any pension protection levy or fraud compensation levy.

Regulation 15 makes provision for the application of the Regulations in the case of multi-employer schemes.

Regulation 16 makes provision for the application of the Regulations in the case of schemes with partial guarantees from relevant public authorities.

Regulation 17 makes provision for the application of the Regulations in the case of hybrid schemes.

Regulation 18 makes provision to avoid duplication of payments where the levies would be payable under the corresponding Great Britain provisions.

The Pensions (2005 Order) (Commencement No. 1 and Consequential and Transitional Provisions) Order (Northern Ireland) 2005 (S.R. 2005 No. 48 (C. 5)) provides for the coming into operation of Articles 103(1), (3) and (7)(a), 110(1)(b), 157(1) and (2), 164(5) and (8)(a), 171(11)(a) and 191(3) and (4) of the 2005 Order, some of the enabling provisions under which these Regulations are made, for the purpose only of authorising the making of regulations on 25th February 2005 and for all other purposes on 1st April 2005.

As these Regulations are made before the end of the period of six months beginning with the coming into operation of the provisions of the 2005 Order by virtue of which they are made, the requirement to consult under Article 289(1) of that Order does not apply by virtue of paragraph (2)(c) of that Article.