Charges will be applied to all final salary pension schemes, from the 6th April this year, with all fees going to the Pension Protection Fund. The levy will consist of an administration charge, a per member cost, and from April 2006, a risk based element. The annual fee for schemes for fewer than 12 members is set at £24, rising to £2.50 per member, for plans with between 12 and 99. Between 100 and 999 members, the admin charge is set at £1.80 per member, with a £250 minimum, increasing to £1.40 with a £1,800 floor for schemes comprising of 1,000 to 4,999 people.
The per member levy is set at £15 per year for active and retired members, and £5 for deferred members who have changed employers and left money in the scheme.
Our view
Long overdue and hopefully a move to restore real confidence for people saving in pensions.