§ Mr. GogginsTo ask the Secretary of State for Social Security if he will make a statement on the general and compensation levies payable under the Pension Schemes Act 1993 by occupational and personal pension schemes. [151891]
§ Mr. RookerI am pleased to announce that the General Levy rates for 2001–02 will be frozen at the 2000–01 level as set out in the table. We have been able to do this as a result of good housekeeping by Opra and buoyant levy receipts. Opra's costs will increase due to new responsibilities for Stakeholder and Personal pensions but will be met from existing levy rates.
Furthermore I am pleased to announce that it will not be necessary to raise a Compensation Levy in 2001–02.
The General Levy covers the costs of the bodies that safeguard the rights of pension scheme members or provide them with help, advice and information. These bodies are the Occupational Pensions Regulatory Authority (Opra), the Pensions Ombudsman, the Pensions Advisory Service and the Pension Schemes Registry.
700WThe Compensation Levy covers the cost of expenditure by the Pensions Compensation Board.
Compensation can be paid up to a limit set out in legislation to occupational schemes of insolvent employers who have suffered a reduction in their assets through dishonesty such as theft or fraud.
Scheme rates Scheme size Basis 2000–01 (£) 2001–021 (£) Minimum payment per scheme (£) Occupational pensions 2 to 11 Scheme 12.00 12.00 — 12 to 99 Member 1.25 1.25 — 100 to 999 Member 0.90 0.90 125 1,000 to 4,999 Member 0.70 0.70 900 5,000 to 9,999 Member 0.53 0.53 3,500 10,000+ Member 0.37 0.37 5,300 Personal pensions 2 to 11 Scheme 5.20 5.20 — 12 to 99 Member 0.50 0.50 — 100 to 999 Member 0.35 0.35 50 1,000 to 4,999 Member 0.30 0.30 350 5,000 to 9,999 Member 0.20 0.20 1,500 10,000+ Member 0.15 0.15 2,000 1 No change Note:
Minimum payments ensure that schemes in the lower bands do not pay more overall than those in the higher bands.