(This note is not part of the Regulations)
Regulation 2 of these Regulations amends the Occupational and Personal Pension Schemes (General Levy) Regulations 2005 (S.I. 2005/626). It amends regulations 6 and 7 and inserts a new Schedule to specify the new figures that are to be used in calculating the rate at which the general levy for occupational pension schemes and that for personal pension schemes is payable. The new rates apply for the financial years beginning with 1st April 2021, 1st April 2022 and 1st April 2023.
The general levy on occupational and personal pension schemes recovers from schemes the funding provided by the Department for Work and Pensions in respect of the core activities of the Pensions Regulator, the activities of the Pensions Ombudsman and the pensions-related activities of the Money and Pensions Service(1).
The effect of the changes is to increase the general levy rates for both occupational and personal pension schemes for those financial years and to introduce separate rates for defined benefit and hybrid, money purchase and Master Trust occupational pension schemes.
Regulation 3 of these Regulations revokes the Occupational and Personal Pension Schemes (General Levy) (Amendment) Regulations 2017 (S.I. 2017/203) which imposed the previous increase.
An impact assessment has not been published for these Regulations as they amend an existing statutory levy regime and the associated administrative costs are negligible.
The 2018 Act created a new body referred to in that Act as the single financial guidance body which took over the functions of the Pensions Advisory Service. This body was named by regulation 2 of the Financial Guidance and Claims Act 2018 (Naming and Consequential Amendments) Regulations 2019 (S.I. 2019/383) as the Money and Pensions Service.