Explanatory note

These Regulations specify the duration of the transitional period for the purposes of section 180 of the Pensions Act 2004 (c. 35) (“the Act”). Section 180 provides for the pension protection levy during the transitional period. The Regulations also make provision in relation to the imposition of a risk-based pension protection levy, in respect of multi-employer schemes, for the financial year beginning on 1st April 2006.

Regulation 2 provides that the transitional period is a period of 12 months beginning on 1st April 2006.

Regulation 3 modifies section 175 of the Act (pension protection levies), in relation to segregated schemes, for the financial year beginning on 1st April 2006.

Regulation 4 modifies section 175 of the Act, in relation to non-segregated schemes, for the financial year beginning on 1st April 2006.

Regulation 5 modifies section 175 of the Act, in relation to multi-employer sections of segregated schemes, for the financial year beginning on 1st April 2006.

Regulation 6 makes provision consequential to regulations 2 to 5.

As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of the Act by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities or voluntary bodies.