Steve Webb (Minister of State for Pensions) has issued a written parliamentary statement announcing that the Pension Protection Fund (PPF) administration levy and general levy will not be increased in the 2011/2012 financial year.
The administration levy applies to defined benefit (DB) schemes and is intended to fund the PPF’s ongoing administration costs. The rate is calculated annually on a sliding scale based on the number of scheme members. The general levy is applicable to occupational and personal pension schemes and takes into account the number of active, deferred and pensioner members in a scheme.
Accordingly, the 2011/2012 rates will range as follows:
- The general levy will begin at £33 for schemes with fewer than 12 members, rising to £1 per member with a minimum of £14,300 for schemes with 10,000 or more members;
- The PPF administration levy will begin at a flat rate of £42 for schemes with fewer than 12 members, rising to £1.29 per member with a minimum of £18,400 for schemes with 10,000 or more members.