Statutory Instruments
2020 No. 101
Pensions
The Pension Protection Fund and Occupational Pension Schemes (Levy Ceiling and Compensation Cap) Order 2020
Made
30th January 2020
Laid before Parliament
3rd February 2020
Coming into force in accordance with article 1(2) to (4)
The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 178(1) and (6) and 315(2) and (5) of, and paragraphs 26A(7) and 27(2) and (3) of Schedule 7 to, the Pensions Act 2004(1).
In accordance with section 178(5) of that Act, the Secretary of State has reviewed the general level of earnings obtaining in Great Britain during the period of 12 months ending with 31st July 2019. It appears to the Secretary of State that the general level of earnings has increased by 3.9% during that period.
On a review under section 148(2) of the Social Security Administration Act 1992(2), the Secretary of State concluded that the general level of earnings obtaining in Great Britain exceeds by 3.6% the general level at the end of the period taken into account for the last such review under that section.
2004 c. 35. Paragraph 26A was inserted by paragraphs 1 and 3 of Schedule 20 to the Pensions Act 2014 (c. 19). Paragraph 27(2) was amended by paragraphs 4 and 6 of Schedule 20 to that Act. See also S.I. 2019/159 which set the levy ceiling for the financial year beginning on 1st April 2019.
1992 c. 5. Section 148(2) was amended by section 37 of the Child Support, Pensions and Social Security Act 2000 (c. 19). Paragraph 27(2) of Schedule 7 to the Pensions Act 2004 requires the Secretary of State to make an order increasing the standard amount specified for the purposes of paragraph 26A(7) of that Schedule where on a review under section 148(2) in a tax year, the Secretary of State concludes that the general level of earnings in Great Britain has increased over the relevant period.