Eligible pension schemes are required to pay the levy. Almost all ‘defined benefit’ occupational pension schemes and schemes that have defined benefit elements are eligible.
What are defined benefit schemes?
Generally, your scheme is a defined benefit scheme if it’s promised to provide a certain amount of pension for its members at retirement, for instance, if it's a final salary scheme.
How the levy is calculated
The levy is calculated based on risk factors, in a similar way to insurance premiums.
Read the levy rules
The levy rules direct how we calculate your levy and treat your data.
How your levy has been calculated for 2018/19
Find out the levy scaling factor, scheme based levy and risk-based levy cap for 2018/19
What is the risk-based levy?
The risk-based levy is paid by all eligible schemes that are not fully funded.
Read more about the risk-based levy
What are contingent assets?
Contingent assets can reduce the risk of the scheme entering the PPF.
What are deficit reduction contributions?
These are extra payments you can make to reduce the shortfall of funding in a pension scheme.
Past levy rule determinations
We review and consult on how we apply the levy rules each year.