Who can apply for a levy waiver?
When a scheme presents no risk or very little risk of entering the PPF, the Board has a discretionary power to waive the levy.
As the regulations around levy waivers have very strict criteria, you can only apply in the following circumstances:
1. Where the scheme is authorised to continue as a closed scheme - under Section 153 of the Pensions Act 2004
2. Where the PPF Board is satisfied that:
(a) no further contributions will be paid towards the scheme by or on behalf of members in respect of relevant benefits, and
(b) all relevant benefits payable to scheme members will be provided in full by one or more insurance policy or annuity contract. This includes pension credit rights, according to Section 124(1) of the Pensions Act 1995 – interpretation of Part 1.
In addition to (a) and (b) above, no waiver will be granted unless the Board is also satisfied that there are insufficient unallocated assets in the scheme to meet its liabilities for payment of that levy in full.
(a) the scheme has no active members
(b) the liquidator, appointed for the voluntary winding up of the company, was the employer at the time immediately before the scheme ceased to have active members
(c) the liquidator has sent his final account and return - under Section 94 of the Insolvency Act 1986 - to the registrar of companies, and(d) it appears to the Board that it expects the dissolution of the company to take effect on or before 31 December of the financial year to which the proposed waiver relates
The Board will consider using its discretion to waive the levy under circumstances 1, 2 and 3 above.
In all cases, the scheme must provide documentation in support of its application.
The information we need depends on the waiver criteria you’re applying under. You’ll find a list of evidence on the back of the Waiver Application Form.
How to apply for a waiver
- You can only apply for a waiver within 28 days after the date of your invoice. This deadline can't be extended.
- You can’t apply for a waiver once the levy invoice has been paid, even if you might meet the other grounds for a waiver
- If you’ve had a waiver granted in a previous year, you still need to apply again each year