On Mar. 14, 2025, Reg-Track amended regulator on this rule to be UK NI Exec.
On Mar. 7, UK NI Exec issued order on levy ceiling for 2025.
UK NI NIA issued Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling) Order (Northern Ireland) 2025 (SR 2025/38) and explanatory memo (PDF).
Follows UK GVT Feb. 2025, set pension protection fund levy, new order, see #242409.
Setting Ceiling Levy
The Pensions Act 2004 set up the Pension Protection Fund (fund), covering all of UK, to provide compensation for members of relevant occupational pension schemes.
This is in instances where the sponsoring employer is insolvent and the scheme has insufficient assets to pay benefits at fund compensation levels.
Annual pension protection levies funds compensation, and these levies are imposed by the fund and charged to all qualifying defined benefit occupational pension schemes.
Application of a levy ceiling is a control mechanism which makes sure the amount raised via pension protection levies by the fund does not go over a certain maximum.
When UK GVT Secretary of State for Work and Pensions makes a levy ceiling order as per Pensions Act 2004, Department for Communities can make a corresponding order.
Department does not have the power to set different amounts for Northern Ireland.
This order as laid before UK NI NIA sets the levy ceiling amount for the 2025-2026 year at £1,403,184,443.44, and corresponds to the UK StIn 2025/103.
Effectiveness
Order specifies the Pension Protection Fund levy ceiling for beginning of Apr. 6, 2025 financial year, and the statutory rule is in force from Mar. 31, 2025.
Mar. 14, 2025 Editorial Update
On Mar. 14, 2025, Reg-Track amended regulator on this rule to be UK NI Exec.
