Explanatory note

These Regulations implement, in respect of the administration levy, the Decision of the European Commission 55/2007/EC of 11th February 2009 (O.J. L242, 15.9.09. p.21) that the exemption from the payment of a levy to the Pension Protection Fund corresponding to the pension liabilities covered by a Crown guarantee constitutes State aid that is incompatible with the common market within the meaning of Article 87(1) of the EC Treaty, now Article 107 of the Treaty on the Functioning of the European Union.

Regulation 2 amends regulation 7 of the Occupational Pension Schemes (Levies) Regulations 2005 (S.I. 2005/842) (The Levies Regulations) as it applies to an occupational pension scheme with a Crown guarantee which becomes an eligible scheme during a financial year. Regulation 2 also amends regulation 16 of the Levies Regulations as it applies to a scheme with a partial Crown guarantee to which regulations 2A of the Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations 2005 (S.I. 2005/277) applies.

A full impact assessment has not been published for this instrument as it has only a negligible impact on the private, public and voluntary sectors.