The Occupational Pension Schemes (Levies) (Amendment) Regulations 2007
S.I. 2007/994 · Made 23 March 2007
PENSIONS
Made 23rd March 2007
Coming into force in accordance with regulation 1(2) and (3)
These Regulations are made in exercise of the powers conferred by sections 117(1), (3) and (7)(b), 209(7) and (8), 315(2) and (5) and 318(1) of the Pensions Act 2004 M1.
In accordance with section 117(4) of that Act the Secretary of State for Work and Pensions has consulted the Board of the Pension Protection Fund M2.
In accordance with section 317(1) of that Act the Secretary of State for Work and Pensions has consulted such persons as he considers appropriate.
In accordance with section 316(2)(a) and (g) of that Act a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.
Accordingly the Secretary of State for Work and Pensions makes the following Regulations:
Annotations to the whole text
Marginal citations
- M1
2004 c.35. Section 318(1) is cited because of the meaning there given to “prescribed” and “regulations”.
- M2
The Board of the Pension Protection Fund is established by section 107 of the Pensions Act 2004.
Contents
- 1Citation, commencement and interpretation
- 2Removal of references to the PPF Ombudsman levy
- 3The administration levy Repealed
- 4Waiver of the administration levy
- 5Revocations
- Signature
- Explanatory note
1Citation, commencement and interpretation
These Regulations may be cited as the Occupational Pension Schemes (Levies) (Amendment) Regulations 2007.
This regulation and regulation 4 shall come into force on 30th March 2007.
Regulations 2, 3 and 5 shall come into force on 1st April 2007.
In these Regulations “the Levies Regulations” means the Occupational Pension Schemes (Levies) Regulations 2005 M1.
2Removal of references to the PPF Ombudsman levy
The Levies Regulations are amended in accordance with this regulation (see also regulations 3 and 4 which make further amendments).
In regulation 2 (interpretation), omit the definition of “the PPF Ombudsman levy”.
For the heading to Part 2 substitute “ ADMINISTRATION LEVY ”.
Omit regulation 3 (meaning of “the levies” in Part 2).
In regulation 4 (liability for the levies)—
for the heading substitute “ Liability for the administration levy ”;
omit paragraph (2);
in paragraph (3), for “Subject to paragraph (4), the levies are” substitute “ The administration levy is ”;
omit paragraph (4) M1;
in paragraph (5), for “The levies in respect of a financial year are” substitute “ The administration levy in respect of a financial year is ”; and
in paragraph (6), for “the levies are” substitute “ the administration levy is ”.
In regulation 5(1) (the reference day), for “each of the levies” substitute “ the administration levy ”.
In regulation 7(2) (schemes eligible for only part of the financial year), for “each of the levies” substitute “ the administration levy ”.
In regulation 13(1) M2 (meaning of “the levies” in Part 4), omit “, the PPF Ombudsman levy”.
In regulation 18(4) M3 (avoidance of double liability: schemes in Northern Ireland), omit sub-paragraph (b).
3The administration levyF1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4Waiver of the administration levy
After regulation 7 of the Levies Regulations (schemes eligible for only part of the financial year) insert—
“Waiver of the administration levy
7A(1)This regulation applies to an eligible scheme if, in respect of a financial year—
(a)any amount payable by way of any pension protection levy in respect of the scheme is waived under regulations made under section 181(8)(b) of the 2004 Act; and
(b)the scheme is not a scheme which is authorised under section 153 of the 2004 Act M1 to continue as a closed scheme.
(2)In respect of the same financial year, any amount payable by way of the administration levy in respect of the scheme is also waived.”.
5Revocations
Paragraphs (2), (4) and (8)(a) of regulation 2 of the Occupational Pension Schemes (Levies) (Amendment) Regulations 2006 M1 (amendment of the Levies Regulations) are revoked.
Signature
Signed by authority of the Secretary of State for Work and Pensions.
James Purnell
Minister of State,
Department for Work and Pensions
23rd March 2007
Explanatory note
(This note is not part of the Regulations)
These Regulations make amendments to the Occupational Pension Schemes (Levies) Regulations 2005 (S.I. 2005/842) (“the Levies Regulations”).
Regulation 2 removes from the Levies Regulations all references to the PPF Ombudsman levy. This is the levy for the purpose of meeting expenditure of the Secretary of State under section 209(6) of the Pensions Act 2004 (“the 2004 Act”) (expenditure relating to the Ombudsman for the Board of the Pension Protection Fund) (“the Board”).
Regulation 3 substitutes regulation 6(2) of the Levies Regulations. This specifies the rate at which the administration levy is payable. This is the levy for the purpose of meeting expenditure of the Secretary of State under section 117(1) of the 2004 Act (expenditure relating to establishment of the Board its administration costs). For the financial year ending with 31st March 2008, there is an increase to the basis of the calculation of the levy in the range of 47% to 49% (see column 2 of the table inserted by regulation 3). The increase to the level of the minimum amount payable is in the range of 45% to 49% (see column 3 of that table). The increases are based on costs incurred in establishing the Board, the Board's estimate of its administration costs requirement for 2007/2008 and changes in scheme membership data.
Regulation 4 inserts a new regulation 7A into the Levies Regulations. This sets out the circumstances of a waiver of the administration levy payable in respect of an eligible scheme. If any pension protection levy payable in respect of the scheme has been waived for a financial year, the administration levy for that year is also waived.
Regulation 5 revokes regulation 2(2), (4) and (8)(a) of the Occupational Pension Schemes (Levies) (Amendment) Regulations 2006 (S.I. 2006/935). These provisions contain amendments to the Levies Regulations which are superseded by amendments made by regulations 2 and 3 of these Regulations.
These Regulations have only a negligible impact on the cost of business, charities or the voluntary sector. Publication of a full Regulatory Impact Assessment is not necessary for such legislation.