The Occupational and Personal Pension Schemes (General Levy) Regulations review 2023

Summary:

The UK government's Department for Work and Pensions is conducting a public consultation on proposed changes to the General Levy on occupational and personal pension schemes. The consultation seeks views on three options for mitigating the ongoing deficit in levy funding over the next three tax years (2024-2027). The three options are:

1. Freezing levy rates at current levels until 2026-2027 and retaining the current four categories of rate payer.
2. Retaining the current levy structure and increasing rates by 6.5% per year.
3. Increasing rates by 4% per year and introducing an additional premium rate for small schemes with memberships under 10,000 from 2026.

The consultation is open until 13 November 2023, and stakeholders are encouraged to provide feedback on the proposed options. The consultation document is available for download.