(This note is not part of the Order)
This Order specifies, for the purposes of section 177 of the Pensions Act 2004 (c 35) (“the Act”), the levy ceiling for the financial year beginning on 1st April 2011.
Section 175 of the Act provides that the Board of the Pension Protection Fund must impose pension protection levies for each financial year falling after the initial period (as defined by section 174 of the Act). Section 177 of the Act contains provisions on the amount which is to be raised by the pension protection levies. By virtue of section 177(2), the amount of the levies for a financial year must not exceed the levy ceiling for that financial year.
The Occupational Pension Schemes (Levy Ceiling) Order 2010 (SI 2010/666) (“the 2010/2011 Order”) specifies that the levy ceiling for the financial year beginning on 1st April 2010 is £871,183,684. Section 178(3)(a) of the Act provides that the levy ceiling must increase in line with any increase in the general level of earnings obtaining in Great Britain. The Occupational Pension Schemes (Levy Ceiling—Earnings Percentage Increase) Order 2011 (SI 2011/169) specifies that the increase in the general level of earnings for the period of 12 months ending with 31st July 2010 is 2.4%. Accordingly, article 2 of this Order specifies that the levy ceiling for the financial year beginning on 1st April 2011 is £892,092,092.
Article 3 revokes the 2010/2011 Order.
This Order amends an existing regulatory regime by a pre-determined formula and has only a negligible impact on business, charities and the voluntary sector. An Impact Assessment is not necessary for such an Order.