The Government has tabled a regulatory amendment designed to cut the Pension Protection Fund levy as policymakers seek to relieve the financial pressures facing defined-benefit schemes.
The Department for Work and Pensions has proposed a cut in the PPF general levy by 12 per cent for 2012/13, while the administration levy will be reduced by at least 25 per cent.
The general levy on occupational and personal pension schemes provides for all the administration costs of the Pensions Advisory Service, the Pensions Ombudsman and some of the Pensions Regulator’s admin costs.
The administration levy provides for the administration costs of the PPF and the Fraud Compensation Fund.
Pensions minister Steve Webb (pictured) says: “We are committed to doing what we can to lessen cost pressures on pensions schemes and that is why we are proposing that the rates for both the PPF administration levy and the general levy for 2012/13 will be reduced by at least 25 per cent and 12 per cent respectively.
“This is good news and will be a significant step towards ensuring the sustainability of pension schemes.”