The Occupational and Personal Pension Schemes (Levies – Amendment) Regulations 2012

Made25th February 2012

Laid before Parliament1st March 2012

Coming into force1st April 2012

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 175(1) to (3), 181(1) and 182(2) of the Pension Schemes Act 19931 and sections 117(1) and (3), 315(2) and 318(1) of the Pensions Act 20042.

In accordance with section 185(1) of the Pension Schemes Act 19933 and section 317(1) of the Pensions Act 2004, the Secretary of State has consulted with such persons as the Secretary of State considers appropriate.

In accordance with section 117(4) of the Pensions Act 2004, the Secretary of State has consulted the Board of the Pension Protection Fund4.

Citation and commencement1.

(1)

These Regulations may be cited as the Occupational and Personal Pension Schemes (Levies – Amendment) Regulations 2012.

(2)

They come into force on 1st April 2012.

Amendment of the Occupational and Personal Pension Schemes (General Levy) Regulations 20052.

(1)

The Occupational and Personal Pension Schemes (General Levy) Regulations 20055 are amended as follows.

(2)

For regulation 6(2) (amount of the general levy: occupational pension schemes)6, substitute—

“(2)
This is the table—
Number of members on the reference day
Amount of levy calculated by reference to number of members (M)
Minimum amount of levy
2 to 11
£29
12 to 99
£2.88 multiplied by M
100 to 999
£2.08 multiplied by M
£290
1,000 to 4,999
£1.62 multiplied by M
£2,080
5,000 to 9,999
£1.23 multiplied by M
£8,100
10,000 or more
£0.86 multiplied by M
£12,300.”.

Number of members on the reference day	Amount of levy calculated by reference to number of members (M)	Minimum amount of levy
2 to 11		£29
12 to 99	£2.88 multiplied by M
100 to 999	£2.08 multiplied by M	£290
1,000 to 4,999	£1.62 multiplied by M	£2,080
5,000 to 9,999	£1.23 multiplied by M	£8,100
10,000 or more	£0.86 multiplied by M	£12,300.”.

(3)

For regulation 7(2) (amount of the general levy: personal pension schemes)7, substitute—

“(2)
This is the table—
Number of members on the reference day
Amount of levy calculated by reference to number of members (M)
Minimum amount of levy
2 to 11
£12
12 to 99
£1.15 multiplied by M
100 to 999
£0.81 multiplied by M
£120
1,000 to 4,999
£0.69 multiplied by M
£810
5,000 to 9,999
£0.46 multiplied by M
£3,450
10,000 or more
£0.35 multiplied by M
£4,600.”.

Number of members on the reference day	Amount of levy calculated by reference to number of members (M)	Minimum amount of levy
2 to 11		£12
12 to 99	£1.15 multiplied by M
100 to 999	£0.81 multiplied by M	£120
1,000 to 4,999	£0.69 multiplied by M	£810
5,000 to 9,999	£0.46 multiplied by M	£3,450
10,000 or more	£0.35 multiplied by M	£4,600.”.

Amendment of the Occupational Pension Schemes (Levies) Regulations 20053.

For regulation 6(2) of the Occupational Pension Schemes (Levies) Regulations 2005 (the amount payable)8, substitute—

“(2)
This is the table for the administration levy for the financial year ending with 31st March 2013 and for each financial year after that—
Number of members on the reference day
Amount of levy calculated by reference to number of members (M)
Minimum amount of levy
2 to 11
£31
12 to 99
£3.20 multiplied by M
100 to 999
£2.31 multiplied by M
£320
1,000 to 4,999
£1.80 multiplied by M
£2,310
5,000 to 9,999
£1.36 multiplied by M
£9,000
10,000 or more
£0.95 multiplied by M
£13,600.”.

Number of members on the reference day	Amount of levy calculated by reference to number of members (M)	Minimum amount of levy
2 to 11		£31
12 to 99	£3.20 multiplied by M
100 to 999	£2.31 multiplied by M	£320
1,000 to 4,999	£1.80 multiplied by M	£2,310
5,000 to 9,999	£1.36 multiplied by M	£9,000
10,000 or more	£0.95 multiplied by M	£13,600.”.

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

Steve Webb

Minister of State,

Department for Work and Pensions

25th February 2012

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Occupational and Personal Pension Schemes (General Levy) Regulations 2005 (S.I. 2005/626) (“the General Levy Regulations”) and the Occupational Pension Schemes (Levies) Regulations 2005 (S.I. 2005/842) (“the Administration Levy Regulations”).

Regulation 2 substitutes regulations 6(2) and 7(2) of the General Levy Regulations. This specifies the new figures to be used in calculating the rate at which the general levy is payable. The new figures apply for each financial year starting with the one which begins on 1st April 2012.

The purpose of the general levy is to meet the expenditure mentioned in section 175(1) of the Pension Schemes Act 1993 (c.48). Specified occupational and personal pension schemes pay the general levy (see regulation 3 of the General Levy Regulations). The general levy is used to fund the Pensions Regulator, the Pensions Advisory Service and the Pensions Ombudsman.

Regulation 3 substitutes regulation 6(2) of the Administration Levy Regulations. This specifies the new figures to be used in calculating the rate at which the administration levy is payable. The new figures apply for each financial year starting with the one which begins on 1st April 2012.

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 Administration Levy Regulations). The administration levy is used to fund administration expenses of the Board of the Pension Protection Fund.

These Regulations reduce costs for business and civil society organisations overall. A full impact assessment has not been published for these Regulations as they amend an existing statutory levy regime and the associated administrative costs are negligible.