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How we set the levy rules

The framework for the levy rules is set out in legislation (Pensions Act 2004). We review and consult on how we apply these rules each year. 

Introduction to the levy

Similar to an insurance premium, the amount of levy each scheme pays is primarily based on the risk of its sponsoring employer becoming insolvent. A small portion of the levy we collect is based on the size of the scheme. 

Is your scheme eligible?

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

Levy rules for 2018/19

The following rules and guidance set out how we calculated the levy for the 2018/19 levy year. These were published following a consultation. The following rules and guidance�provide a detailed explanation of how we calculate the levy. The appendices and guidance documents include steps that schemes can take to ensure they receive credit for positive actions, such as certifying contingent assets or deficit reduction contributions.

How to certify deficit reduction contributions

Deficit reduction contributions must have been made by 31 March and then certified on The Pension Regulator's Exchange system by the end of April.

Who we protect

Everything you need to know about the type of pension schemes we protect.