Date of Screening: 18/02/2021
Screening Outcome - Full EQIA recommended: No
The Pensions Act 2004 set up the Pension Protection Fund, on a UK-wide basis, to provide compensation for members of eligible occupational pension schemes, where the sponsoring employer is insolvent and the scheme has insufficient assets to pay benefits at Fund compensation levels. The compensation is funded through annual pension protection levies imposed by the Fund and charged to all qualifying defined benefit occupational pension schemes. The levy ceiling is a control mechanism which ensures the amount raised through the pension protection levies by the Fund does not exceed a prescribed maximum.
Whenever the Secretary of State for Work and Pensions makes a levy ceiling order under the Pensions Act 2004, the Department is empowered to make a corresponding order. The Order is highly technical. The Department has no power to set different amounts for Northern Ireland.
This year’s order sets the amount of the levy ceiling for the 2021-22 year at £1,099,445,505.