Statutory Instruments
Pensions
Made
10th November 2014
Laid before Parliament
17th November 2014
Coming into force
8th December 2014
The Secretary of State for Work and Pensions, in exercise of the powers conferred by section 45(1) and (2)(b) and section 54(5) and (6) of the Pensions Act 2014(1), makes the following Regulations.
1. These Regulations may be cited as the Payment of Pension Levies for Past Periods Regulations 2014 and shall come into force on 8th December 2014.
Commencement Information
I1Reg. 1 in force at 8.12.2014, see reg. 1
2. So far as relating to the requirement to pay pension levy, the Pensions Act 2004(2), and regulations made under it, shall have effect as if the amendments made by the 2010 regulations had always had effect(3).
Commencement Information
I2Reg. 2 in force at 8.12.2014, see reg. 1
3.—(1) This regulation applies to any amount of pension levy which becomes payable as a consequence of the coming into force of regulation 2.
(2) Any amount to which this regulation applies carries interest for the period beginning with the date on which that amount would have become due if the amendments made by the 2010 regulations had always had effect (“interest start date”) and ending on the date on which payment of that amount is made.
(3) Interest to be added to any amount to which this regulation applies shall be compound interest calculated at the rates specified in paragraphs (4) to (7) with yearly rests.
(4) The rate of interest to be applied for the period beginning with the interest start date for the first year is that set out in column (c) of Table 1 next to the period as set out in columns (a) and (b) within which the interest start date falls.
(5) On each anniversary of the interest start date, where any anniversary of the interest start date falls on or before 31st October 2014, the rate of interest to be applied for the year from that anniversary date is that set out in column (c) of Table 1 next to the period as set out in columns (a) and (b) within which the anniversary date falls.
(6) Where any anniversary of the interest start date falls after 31st October 2014, the interest rate to be applied during the year from that anniversary date is the EU recovery interest rate.
(7) For the purposes of paragraph (6), “EU recovery interest rate” means the rate referred to in Article 9 of Commission Regulation (EC) No 794/2004(4) [F1(as it had effect in the United Kingdom immediately prior to IP completion day)].
Column (a) From | Column (b) To | Column(c) Interest Rate% |
|---|---|---|
| 1st January 2005 | 31st December 2005 | 5.81 |
| 1st January 2006 | 31st December 2006 | 5.33 |
| 1st January 2007 | 30th September 2007 | 5.90 |
| 1st October 2007 | 31st December 2007 | 6.83 |
| 1st January 2008 | 13th April 2008 | 6.29 |
| 14th April 2008 | 30th June 2008 | 6.60 |
| 1st July 2008 | 31st December 2008 | 6.66 |
| 1st January 2009 | 31st January 2009 | 6.70 |
| 1st February 2009 | 28th February 2009 | 5.81 |
| 1st March 2009 | 31st March 2009 | 4.58 |
| 1st April 2009 | 31st May 2009 | 3.84 |
| 1st June 2009 | 31st July 2009 | 3.20 |
| 1st August 2009 | 30th September 2009 | 2.85 |
| 1st October 2009 | 30th November 2009 | 2.53 |
| 1st December 2009 | 31st December 2009 | 2.20 |
| 1st January 2010 | 30th June 2010 | 2.16 |
| 1st July 2010 | 31st December 2010 | 2.35 |
| 1st January 2011 | 31st December 2011 | 2.48 |
| 1st January 2012 | 31st October 2012 | 2.74 |
| 1st November 2012 | 31st December 2012 | 2.46 |
| 1st January 2013 | 31st March 2013 | 2.19 |
| 1st April 2013 | 31st December 2013 | 1.99 |
| 1st January 2014 | 30th September 2014 | 1.88 |
| 1st October 2014 | 31st October 2014 | 2.04 |
Textual Amendments
F1Words in reg. 3(7) inserted (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 2 para. 14(2) (with Sch. 3)
Commencement Information
I3Reg. 3 in force at 8.12.2014, see reg. 1
Signed by the authority of the Secretary of State for Work and Pensions
Steve Webb
Minister of State,
Department for Work and Pensions
(This note is not part of the Regulations)
These Regulations implement, in respect of payments of the pension levies under the Pensions Act 2004 and the regulations made under it, in respect of periods before the coming into force of the 2010 regulations (S.I. 2010/196 and S.I. 2010/1930), the Decision of the European Commission 55/2007/EC of 11th February 2009 (O.J. L242, 15.9.09) that the exemption from the payment of a levy to the Pension Protection Fund corresponding to the pension liabilities covered by a Crown guarantee constitutes State aid that is incompatible with the common market within the meaning of Article 107 of the Treaty on the Functioning of the European Union.
Regulation 2 modifies the effect of the Pensions Act 2004 and regulations made under it so that the requirement to pay pension levies applies as if the amendments made by the 2010 regulations had always had effect including in respect of past periods before the coming into force of the 2010 regulations.
Regulation 3 provides for interest to be calculated in accordance with Article 2 of the Decision of the European Commission 55/2007/EC which requires any interest to be recovered as a result of unlawful State aid to be calculated pursuant to Chapter V of Commission Regulation (EC) 794/2004 of 21st April 2004 (O.J. L140, 30.4.2004). Commission Regulation 794/2004 implements Council Regulation (EC) 659/1999 (O.J. L83, 27.3.1999) which provides that State aid to be recovered shall include interest at a rate fixed by the European Commission. Commission Regulation (EC) 794/2004 provides for the method for fixing the interest rate, provides for publication of the rate and specifies in Article 11 that interest shall be applied on a compound basis, added at yearly intervals. The base rates are calculated in accordance with the Communication from the European Commission on the revision of the method for setting the reference and discount dated 19th January 2008 (O.J. C14 19.01.2008).
“Pension levy” and “the 2010 regulations” are defined in section 45(3) of the Pensions Act 2014.
OJ No L140, 30.4.2004, p1. Article 9 was amended by Commission Regulation (EC) 271/2008 (OJ No L82, 25.3.2008, p1). In accordance with Article 10 of Commission Regulation (EC) 794/2004 the rates are published by the European Commission and the rates are calculated in accordance with the Communication from the European Commission dated 19th January 2008 (OJ C14 19.01.2008, p6).