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Cymraeg | |
Invoicing 2008/09 FAQsInvoicing FAQs for 2007-08 remain available on the site When will I receive my 2008/09 levy invoice? Can you tell me in advance how much it will be? We will initially be issuing an estimated 800 pension protection levy invoices per week, so you might not receive your invoice straight away. We expect to send the majority of invoices within the first few months of invoicing. Unfortunately, we are not able to tell you in advance how much your levy invoice will be as the final levy calculation for a scheme occurs at the point an invoice is issued. Until that point, we’re working hard to make sure all schemes’ information is complete and we can’t give special assistance to one scheme at the expense of others.
It would not be possible for the PPF to invoice all 7000+ eligible schemes in a way that fits in with individual financial years. This means that a scheme may receive invoices relating to the 2007/08 and 2008/09 levy years within one scheme financial year, depending on the actual period of its financial year. We appreciate that this may cause some inconvenience; however, we think it is fair to expect schemes to have planned for this accordingly. We have made improvements to our systems and processes over the past two years and these, together with the better quality of data now collected via the Pension Regulator’s Exchange system, should mean that we meet our aim of invoicing 95% of eligible schemes by 31 December and all eligible schemes by 31 March from the levy year 2008/09 onwards..
Going forward, schemes can help us to achieve our aim of invoicing 95% of eligible schemes by 31 December and all eligible schemes by 31 March each levy year by maintaining accurate and complete data via the Pension Regulator’s Exchange system.
Under section 181 of the Pensions Act 2004, the trustees of the scheme are required to pay this amount to the Board and the Board intends that the invoice and the supporting documentation issued with it will enable levy payers to meet their statutory obligations to pay this invoice immediately. If the trustees wish to query the amount of pension protection levy payable by the scheme, they must raise their query within 28 days of the date of this invoice by contacting the Pension Protection Fund and/or D&B using the contact details shown on the invoice. This deadline will be strictly applied, except in exceptional circumstances. If no query is raised with the PPF within 28 days, the Board will begin rigorous debt collection activities.
The risk-based levy is capped at 1 per cent of the scheme’s estimated liabilities on a section 179 basis as at 31 October 2007. We expect that this cap will affect around 8 per cent of eligible schemes. The Board considers the level of the risk based levy cap to be reasonable taking into account the need for each scheme to maintain appropriate funding levels in addition to paying the annual pension protection levy.
Under the Pension Protection Fund (Waiver of Pension Protection Levy and Consequential Amendments) Regulations 2007 the Board has therefore a discretionary power to waive the levy in respect of schemes that fall within a discrete set of prescribed circumstances and pose little or no risk. These schemes may apply to have either their scheme based levy, or risk based levy, or both, waived for the year in question. The scheme will remain eligible, but no invoice will be payable for the part of the levy being waived that year.
Under the Pension Protection Fund (Waiver of Pension Protection Levy and Consequential Amendments) Regulations 2007 the Board has discretion to waive the pension protection levy in the following circumstances only: 1. Where the scheme is authorised under section 153 of the Act (closed schemes) to continue as a closed scheme. 2. Where it is satisfied in respect of the scheme that (a) no further contributions will be paid towards the scheme by or on behalf of members in respect of relevant benefits, and (b) all relevant benefits which are payable in accordance with each member’s entitlement or accrued rights (including pension credit rights within the meaning of section 124(1) of the Pensions Act 1995 (interpretation of Part 1)) under the scheme rules will be provided in full by a policy of insurance or an annuity contract, even when such policies or contracts are held in members names, or by more than one such policy or contract. Note that only the risk based-levy can be waived in this circumstance, unless the PPF is satisfied that, in addition to the above, the scheme also has insufficient assets to meet the scheme based levy. 3. Where: (a) the scheme has no active members, (b) a liquidator has been appointed for the purposes of a voluntary winding up of the company which, immediately before the time at which the scheme ceased to have any active members, was the employer of persons in relevant employment, (c) the liquidator has sent to the registrar of companies his final account and return under section 94 of the Insolvency Act 1986 (final meeting prior to dissolution), and (d) it appears to the Board that it is reasonable to expect that the dissolution of the company will take effect on or before 31st December of the financial year to which the proposed waiver relates (but see regulation 7). The Board will consider using its discretion to waive the levy under circumstances 2 and 3 above. In ALL cases the scheme must supply documentation in support of their application. If you think one of these categories applies to your scheme, you must contact the Stakeholder Support Team:
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