4 March 2004 - General levy rate to remain unchanged for 2004/05
There will be no change to the rate of General Levy paid by occupational and personal pension schemes for 2004/05 confirmed Pensions Minister Malcolm Wicks today. The levy is used to pay for the costs of the Occupational Pensions Regulatory Authority (OPRA), the Pensions Ombudsman, the Pensions Advisory Service and the Pensions Scheme Registry.
It was also confirmed that the Pensions Compensation Board (PCB) would be raising a Compensation Levy for the first time since 1997 following a significant number of claims to it. The PCB provides assistance to members of schemes whose assets have been reduced through theft or fraud and the levy will be set at its 1997 rate of 23p per member.
Malcolm Wicks said:
“I am pleased to announce that there will be no increase in the General Levy rates for 2004/05. They will remain at the 2000/01 level as set out in the table.
“However the Pensions Compensation Board will raise a Compensation Levy in 2004/05 at 23p per member for only the second time. This will ensure the Pensions Compensation Board will continue to provide invaluable financial support for members of occupational pension schemes whose assets have been removed dishonestly. It is vital that the Board has adequate funds to be able to provide financial help when appropriate.”
Notes for editors
- The General Levy meets the cost of the Occupational Pensions Regulatory Authority (Opra) that regulates occupational and private pension schemes. It also meets the cost of the Pensions Ombudsman, the Pensions Advisory Service and the Pension Schemes Registry, which provide scheme members with help, advice and information.
- The Compensation Levy covers the cost of expenditure by the Pensions Compensation Board. Compensation can be paid up to a limit set out in legislation to occupational schemes of insolvent employers who have suffered a reduction in their assets through dishonesty such as theft or fraud.
- The General Levy rates for 2004/05 are as follows:
Table 1 - Occupational Pension Schemes
Scheme Size
(Number of Members)Basis Amount per Member Minimum Payment per Scheme [1] 2 to 11 £12 Per scheme _ _ 12 to 99 Per Member £1.25 _ 100 to 999 Per Member £0.90 £125 1,000 to 4,999 Per Member £0.70 £900 5,000 to 9,999 Per Member £0.53 £3,500 10,000 or more Per Member £0.37 £5,300 Table 2 - Personal Pension Schemes
Scheme Size
(Number of Members)Basis Amount per Member Minimum Payment Per Scheme [1] 2 to 11 £5.20 Per scheme _ _ 12 to 99 Per Member £0.50 _ 100 to 999 Per Member £0.35 £50 1,000 to 4,999 Per Member £0.30 £350 5,000 to 9,999 Per Member £0.20 £1,500 10,000 or more Per Member £0.15 £2,000 Note: 1. Minimum payments ensure that schemes in the lower bands do not pay more overall than those the higher bands
- For further information please contact: Stewart Todd 020 7238 0643
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