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What's the purpose of the levy?

The Secretary of State for Work and Pensions sets the rate of the general levy each year. The levy is in place to cover the cost of running:

  • The Pensions Regulator
  • The Pensions Ombudsman Service
  • The Pensions Advisory Service (TPAS)

Pay the levy by direct debit

Direct debit - the easy way to pay your scheme levy. It's a safe and secure way to make payments, it's free to set up and can save you time and effort (no need to post a cheque).

Set up a direct debit today in four easy steps:

  1. Log on to Exchange.
  2. Navigate to the 'My schemes' page and select from your list of associated schemes (if you've not yet associated to your scheme, any existing associated Exchange user is able to provide you access to your scheme).
  3. Choose 'Maintain / View scheme levy' from the 'Scheme options' page.
  4. Select 'Set up a direct debit for levy payments'.

Understanding your levy invoice

The Secretary of State for Work and Pensions sets the rate of the general levy each year.

The general levy is based on the total number of members in the scheme at the end of the scheme year before last.

You can update your scheme's membership using scheme maintenance in Exchange.

Here are some examples:

  • Levy payable on 1 April 2014 would be based on total scheme membership taken as at the scheme year end prior to 1 April 2013 - if the scheme year end is 5 April, membership will be taken as at 5 April 2012.
  • ABC Pension scheme is a defined contribution (money purchase) pension scheme and is eligible for the 2014 levy invoice. The membership figure of 200 was taken as at 5 April 2012. The general levy rate for 100 - 999 members is £2.08 per member, therefore the amount payable for the general levy is £2.08 x 200 = £416.

The amount to be paid depends on the band which the scheme falls into and may be subject to a minimum amount per band.

To view previous years' bandings, please see the levy archive.

2016 levy

Occupational schemes

Band Number of members General levy Minimum payment per scheme
1 2-11 Not relevant - flat rate £29
2 12-99 £2.88 per member No minimum payment - rate per member
3 100-999 £2.08 per member £290
4 1,000-4,999 £1.62 per member £2,080
5 5,000-9,999 £1.23 per member £8,100
6 10,000 and over £0.86 per member £12,300

Personal / stakeholder / group personal pension schemes

Band Number of members General levy Minimum payment per scheme
1 2-11 Not relevant - flat rate £12
2 12-99 £1.15 per member No minimum payment - rate per member
3 100-999 £0.81 per member £120
4 1,000-4,999 £0.69 per member £810
5 5,000-9,999 £0.46 per member £3,450
6 10,000 and over £0.35 per member £4,600

The Pensions Regulator collects the Pension Protection Fund (PPF) administration levy on behalf of the PPF. This levy is calculated in the same way as The Pensions Regulator general levy but uses a different banding. The bands for the PPF administration levy are shown in the table below.

Please note that The Pensions Regulator does not have any involvement in collecting or calculating the PPF risk and scheme-based levies.

To query eligibility in respect of payment of any PPF levies, please visit the Pension Protection Fund website.

Pension Protection Fund administration levy

Band Number of members Amount of levy calculated by reference to number of members Minimum amount of levy
1 2-11 Not relevant - flat rate £42
2 12-99 £4.24 per member No minimum payment - rate per member
3 100-999 £3.06 per member £420
4 1,000-4,999 £2.38 per member £3,060
5 5,000-9,999 £1.80 per member £11,900
6 10,000 and over £1.26 per member £18,000

Pension Protection Fund fraud compensation levy 2016

The Pension Protection Fund fraud compensation levy will not be charged for 2016.

2015 levy

Occupational schemes

Band Number of members General levy Minimum payment per scheme
1 2-11 Not relevant - flat rate £29
2 12-99 £2.88 per member No minimum payment - rate per member
3 100-999 £2.08 per member £290
4 1,000-4,999 £1.62 per member £2,080
5 5,000-9,999 £1.23 per member £8,100
6 10,000 and over £0.86 per member £12,300

Personal / stakeholder / group pension schemes

Band Number of members General levy Minimum payment per scheme
1 2-11 Not relevant - flat rate £12
2 12-99 £1.15 per member No minimum payment - rate per member
3 100-999 £0.81 per member £120
4 1,000-4,999 £0.69 per member £810
5 5,000-9,999 £0.46 per member £3,450
6 10,000 and over £0.35 per member £4,600

Pension Protection Fund administration levy

Band Number of members Amount of levy calculated by reference to number of members Minimum amount of levy
1 2-11 Not relevant - flat rate £36
2 12-99 £3.68 per member No minimum payment - rate per member
3 100-999 £2.65 per member £370
4 1,000-4,999 £2.07 per member £2,650
5 5,000-9,999 £1.57 per member £10,350
6 10,000 and over £1.09 per member £15,700

Pension Protection Fund fraud compensation levy 2015

The Pension Protection Fund fraud compensation levy will not be charged for 2015.

Levy archive

You can find view the levy for previous years on the National Archives website.

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