It’s calculated on the likelihood of your scheme being unable to pay out pensions due to insufficient funding, insolvency and the potential size of the claim that would be passed on to us.

The amount of risk-based levy (RBL) you pay will be based on your annual s179 valuation information, following adjustment. It takes account of scheme funding, insolvency and investment risks. 

If your scheme doesn't have a deficit then you won't have to pay the RBL.

We also cap its calculation to help protect the most vulnerable schemes. This means that the maximum RBL a scheme can be charged is 0.5% of their unstressed liabilities.