# The Pension Protection Fund (Levy Ceiling) Regulations 2006, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations make provision relating to various requirements under sections 177 and 178 of the Pensions Act 2004 (c.35) (“the Act”) in relation to the levy ceiling.
Section 175 of the Act provides that the Board of the Pension Protection Fund (“the Board”) must impose pension protection levies for each financial year falling after the initial period (as defined in section 174 of the Act). Section 177 of the Act provides for the amount to be raised by the pension protection levies. By virtue of section 177(2) of the Act the amount of the levies for a financial year must not exceed the levy ceiling for that financial year. By virtue of article 2 of the Occupational Pension Schemes (Levy Ceiling) Order 2006 (S.I. 2006/742) the levy ceiling for the financial year beginning on 1st April 2006 is £775,000,000, and section 178 of the Act provides for the annual revision of this amount. Section 177(4) of the Act provides that for the first financial year after the transitional period (the period of 12 months beginning on 1st April 2006) regulations may modify section 177(2) of the Act so that the reference therein to the levy ceiling is read as a reference to such lower amount as is prescribed. Regulation 2 provides that for the financial year 2007-2008, the first financial year after the transitional period, this lower amount will be £718,750,000.
Regulation 3 prescribes the date on which the review period shall end.
Regulation 4 prescribes the period before the beginning of which the Secretary of State must discharge the duties imposed by section 178(5) and (6) of the Act.
Regulation 5 prescribes the manner of the consultation required under section 178(9) of the Act and provides that the Board shall include details of how it proposes to decide on its recommendation to the Secretary of State under section 178(8) of the Act in a consultation document, that the Board shall publish the consultation document on its website and in paper format if so requested, and that the Board shall publish a summary of the non-confidential responses it receives to the consultation in the same way.
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 Regulatory Impact Assessment has not been prepared for this instrument as it has only a negligible impact on business, charities or voluntary bodies.

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Source: https://www.legislation.gov.uk/uksi/2006/2692/note (the official version)
Page: https://openlegislation.uk/pension-protection-fund-levy-ceiling-regulations-2006/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.