Following the consultation we launched in September today we’ve published our final levy rules for 2019/20.
The total levy we expect to collect is confirmed at £500 million, down from the £550 million estimate for 2018/19.
Read our 2019/20 levy rules
The policy statement confirms our plans for the levy in 2019/20, the second year of our current three year cycle. As one of our four sources of funding, the levy continues to play a vital role in our funding strategy. Despite significant risks, we’re on track to meet our long-term funding target which means we can set the levy at this level.
We’re grateful for all the feedback we’ve received from those who responded to our annual consultation. Generally those who responded were supportive of our approach, and specific feedback on certain areas has been reflected in the final rules.
Initial approach to commercial consolidators
In particular we’ve taken on board comments about our approach to commercial consolidators – superfunds established to take over the administration and management of defined benefit (DB) schemes from the employers that set them up. Our rules dovetail with the approaches published by the Department for Work and Pensions and The Pensions Regulator last week.
Responses to the consultation also helped us identify immediate steps we can take to improve general support to DB pension schemes in relation to paying the levy, and we’ll continue to engage with schemes as we explore longer term options.
For further information about the levy visit the Levy payers section.