Statutory Instruments
2013 No. 105
Pensions
The Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling and Compensation Cap) Order 2013
Made
21st January 2013
Laid before Parliament
24th January 2013
Coming into force in accordance with article 1(2)
The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 178(1) and (6) and 315(2) and (5) of, and paragraphs 26(7) and 27(2) and (3) of Schedule 7 to, the Pensions Act 2004( 1 ).
In accordance with section 178(5) of that Act, the Secretary of State has reviewed the general level of earnings obtaining in Great Britain during the period of 12 months ending with 31st July 2012. It appears to the Secretary of State that the general level of earnings has increased by 1.6% during that period.
On a review under section 148(2) of the Social Security Administration Act 1992( 2 ), the Secretary of State concluded that the general level of earnings obtaining in Great Britain exceeds by 2.4% the general level at the end of the period taken into account for the last such review under that section.
Citation, commencement and interpretation
1. —(1) This Order may be cited as the Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling and Compensation Cap) Order 2013.
(2) It comes into force—
(a) for the purposes of this article and article 2, on 14th March 2013,
(b) for the purposes of article 3, on 31st March 2013, and
(c) for the purposes of articles 4 and 5, on 1st April 2013.
(3) In this Order, “the Act” means the Pensions Act 2004.
The earnings percentage
2. For the purposes of section 178(3)(a) of the Act (the levy ceiling), the percentage by which it appears to the Secretary of State that the general level of earnings has increased during the review period( 3 ) is 1.6%.
The levy ceiling
3. For the purposes of section 177 of the Act (amounts to be raised by the pension protection levies), the levy ceiling for the financial year beginning on 1st April 2013 is £933,556,533.
The compensation cap
4. The amount specified for the purposes of paragraph (a) of the definition of “the compensation cap” in paragraph 26(7) of Schedule 7 to the Act (pension compensation provisions – compensation cap) is £34,867.04.
Revocation of the Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling and Compensation Cap) Order 2012
5.The Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling and Compensation Cap) Order 2012( 4 ) is revoked.
Signed by authority of the Secretary of State for Work and Pensions.
Steve Webb
Minister of State,
Department for Work and Pensions
21st January 2013
2004 c. 35 . See also S.I. 2012/528 which sets the levy ceiling for the financial year beginning on 1st April 2012.
1992 c. 5 . Section 148(2) was amended by section 37 of the Child Support, Pensions and Social Security Act 2000 (c. 19) .
See section 178(4) of the Pensions Act 2004 and regulation 3 of S.I. 2006/2692 which provide that the review period is the period of 12 months ending with 31st July 2012.