Is your scheme eligible?

Almost all defined benefit pension schemes, and schemes that have defined benefit elements are eligible, unless they benefit from direct support from central or local government.

Which schemes are eligible

Eligibility is defined in section 126 of the Pensions Act 2004 and the Pension Protection Fund (Entry Rules) Regulations 2005.

Almost all defined benefit pension schemes, and schemes that have defined benefit elements are eligible.

Which schemes aren’t eligible

As the criteria is broad, it may help you to understand which schemes aren’t eligible to pay the levy.

Schemes that aren’t eligible include those:

  • With a Crown guarantee
  • Which aren’t tax approved – or tax registered from April 2006
  • Under the tax rules for pension schemes
  • That only provide death in service benefits
  • That have fewer than two members
  • With fewer than 12 members, where all members are trustees of the scheme

As well as:

  • Unfunded public service schemes
  • Public sector schemes providing pensions to local government employees
  • Relevant lump sum retirement benefit schemes
  • Chatsworth Estate Settlement Pension Scheme
  • Cross border schemes which are not UK registered
  • A superannuation fund as mentioned in section 615(6) of the Income and Corporation Taxes Act 1988

Please note: schemes with a partial Crown guarantee are eligible but will only be liable to pay levies for that part of the scheme that doesn’t have a Crown guarantee.

If you believe your scheme is not eligible and you want to let us know, you can complete our eligibility application form.

If you want to check whether your scheme is eligible, please get in touch.

 

 

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