§ The Minister for Pensions (Malcolm Wicks)I am pleased to announce that there will be no increase in the General Levy rates for 2004–05. Rates will remain at the 2000–01 level as set out in the table.
On 11 June 2003, the Government published—"Simplicity, Security and Choice: Working and Saving for Requirement—Action on Occupational Pensions" (Cm 5835), which sets out plans for a new, risk-focused pensions regulator, that also provides support, advice and guidance to the pensions industry.
A significant claim for compensation has been made to the Pensions Compensation Board and, in view of payments which have already been made and future 86WS expected payments, the Pensions Compensation Board believe it is necessary to use current regulations to raise a Compensation Levy in 2004–05 at 23p per member. This is only the second time they have needed to collect the Compensation Levy since its inception in 1997. I am pleased that the Pensions Compensation Board has been able to provide financial support for members of those schemes whose assets have been removed dishonestly. It is vital that the Board has adequate funds to be able to provide financial help when appropriate.
The General Levy rates for 2004–05 are as follows:
Table 1—Occupational Pension Schemes Scheme Size (Number of Members) Basis Amount per Member Minimum Payment Per Scheme1 2 to 11 £12 Per scheme — — 12 to 99 Per Member £1.25 — 100 to 999 Per Member £0.90 £125 1,000 to 4,999 Per Member £0.70 £900 5,000 to 9,999 Per Member £0.53 £3,500 10,000 or more Per Member £0.37 £5,300
Table 2—Personal Pension Schemes Scheme Size (Number of Members) Basis Amount per Member Minimum Payment Per Scheme1 2 to 11 £5.20 Per scheme — — 12 to 99 Per Member £0.50 — 100 to 999 Per Member £0.35 £50 1,000 to 4,999 Per Member £0.30 £350 5,000 to 9,999 Per Member £0.20 £1,500 10,000 or more Per Member £0.15 £2,000
NOTE: 1 Minimum payments ensure that schemes in the lower bands do not pay more overall than those in the higher bands.