PLSA calls for levy freeze and full review | PLSA
PLSA calls for levy freeze and full review

PLSA calls for levy freeze and full review

14 November 2023

The Pensions and Lifetime Savings Association (PLSA) has published its response to the Occupational and Personal Pension Schemes (General Levy) Regulations Review 2023 Public Consultation.

The PLSA submission is available here.

Joe Dabrowski, Deputy Director Policy, PLSA, said: “It’s disappointing that the Government has not listened to the calls from pension schemes to conduct a full structural review of the General Levy, and has instead proposed radical approaches that overburden the smallest schemes and Master Trusts.

“The PLSA firmly believes there should be no major increase in the General Levy without due transparency and accountability on the part of Government and regulated bodies.

“The proposals still leave Automatic Enrolment providers paying on a per-member basis when they currently have mass membership and comparatively low assets under management. Under these proposals, Master Trusts would see their total contributions rise by 33.5% in just three years, even with the per-member cost of the levy remaining unchanged.

“The proposals also do not take account of the challenge of inactive small pots, which we hoped to see excluded from per-member calculations.

“The new proposal for a £10,000 minimum fee to be added to schemes under 10,000 members from April 2026 seems wholly inappropriate and unfair to small schemes.

“The most appropriate way forward now is to freeze all levies at current levels until such time as a full and thorough structural review can be conducted to ensure schemes are not hit by unfair or sharply rising costs.”

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, PR Manager
020 7601 1761 | [email protected]

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