In October 2023, the DWP launched a consultation on proposed changes to the structure and rates of the General Levy. The levy is paid by occupational and personal pension schemes and covers the funding provided by the DWP in respect of the core activities of the Regulator, the Pensions Ombudsman and the pensions-related activities (excluding Pension Wise) of the Money and Pensions Service (MaPS).
Of the three options set out in the consultation, the Government has elected to proceed with option 2, which was supported by a large majority of those who responded. This entails retaining the current levy structure and increasing the rate by 6.5 per cent per year.
The Occupational and Personal Pension Schemes (General Levy) (Amendment) Regulations 2024 have been made and laid in both Houses of Parliament. They are due to come into force on April 1, 2024.
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