PPF administration levy to increase to eliminate funding gap
The Pension Protection Fund (PPF) administration levy will increase by 15% in each of the next three years. This should eliminate an increasing deficit between the PPF’s administrative costs and the funding from current levy rates by 2021/22.
The Occupational Pension Schemes (Levies) (Amendment) Regulations 2015 (SI 2015/84) implement this, following consultation last November (see Pensions Bulletin 2014/48).
The general levy, which recovers the administration costs of the Pensions Regulator, the Pensions Advisory Service and the Pensions Ombudsman, remains unchanged.
Employers override power for cessation of contracting-out almost here
More aspects of the Pensions Act 2014 are being brought into force by the Government. The Pensions Act 2014 (Commencement No. 4) Order 2015 (SI 2015/134) brings provisions into force that:
- Give employers sponsoring contracting-out salary-related occupational pension schemes an overriding power to amend scheme rules to reflect their increased costs following the abolition of contracting-out. This paves the way for regulations setting out the detail of how this power may be used. These are expected in the next couple of weeks
- Restrict a member’s entitlement to a refund of contributions on leaving a scheme with money purchase benefits – from 1 October 2015 a refund will only be payable if the member leaves within 30 days of joining the scheme
- Enable regulations to set out some of the detailed rules relating to the new state pension
For a briefing of the contents of the Pensions Act 2014 see the LCP guide published in May last year, shortly after Royal Assent.
State pension estimate service now available to anyone over age 55
The State Pension statement service is now available to anyone over age 55. This service provides free statements of estimated state pension entitlement based on current national insurance contribution records. Previously it was only available to those over age 60.
The Department for Work and Pensions (DWP) has announced this expansion of the service ahead of the new pension freedoms coming into effect in April.
This Pensions Bulletin does not constitute advice, nor should it be taken as an authoritative statement of the law. For further help, please contact David Everett at our London office or the partner who normally advises you.
