Explanatory note

These are the first commencement regulations made under the Pension Schemes Act 2026 (c. 22) (“the Act”).

Regulation 2 brings into force section 123 of the Act on 29th June 2026.

Section 123 of the Act gives the Board of the Pension Protection Fund the option to reduce the annual levy it collects to zero or a low amount, when it is not required, and to raise it again within a reasonable time frame. It also introduces a safeguard which caps annual increases in the levy by no more than the sum of the previous financial year’s levy and 25% of the previous financial year’s levy ceiling.