Section 178: The levy ceiling
651.This section requires the Secretary of State to specify a levy ceiling before the beginning of each financial year. The levy ceiling for the first financial year for which levies under section 175 are imposed must have the approval of the Treasury. The first levy ceiling set by the Secretary of State is expected to be the amount he estimates would normally be required to be collected by the pension protection levies in a normal year.
652.Subsection (3) requires the levy ceiling to be increased each year by the percentage increase in the level of earnings in Great Britain for the review period (as defined in section 178(4)) For this purpose the Secretary of State is required by subsection (5) to review the general level of earnings for each review period and changes to earnings. He may estimate the general level of earnings in such manner as he thinks appropriate.
653.Subsection (8) allows the Secretary of State to specify an increase to the levy ceiling which exceeds the increase in the level of earnings required by subsection (3). He can only do so if the Board makes a recommendation to that effect and the Treasury approves. The Board must consult appropriate persons before making this recommendation.