Pension Protection System (Administration Levies)

(Limited Text - Ministerial Extracts only)

Monday 15th November 2010 Written Statements

[The Minister of State, Department for Work and Pensions (Steve Webb)]

I am pleased to announce that for 2011-12 the rates for both the PPF administration levy and the general levy will remain at the same levels set for 2010-11.

Some of the administrative resource costs of the Pensions Regulator (tPR), the Pension Protection Fund (PPF), the Pensions Advisory Service (TPAS) and the Pensions Ombudsman (PO) are recovered through levies raised on pension schemes. The rates for these levies are set in regulations.

Levy rates in year are set to avoid frequent changes and do not directly reflect forecast future costs but also take into account accumulated deficits or surpluses in expected levy collection. In holding rates stable, the Government are seeking to avoid additional cost pressures on pension schemes. The rates have remained unchanged since 2008; this stability will be welcomed by levy payers, pension scheme trustees, members and sponsoring employers.