UK. The new pensions levy is deeply unfair
By Gregg Mcclymont
Most of us spent our childhoods being conditioned to the reality that life is not fair.
However, that does not make it any easier to digest when confronted with a situation that requires us to make our disquiet known.
Plenty within the industry are allowing their voices to be heard in regards to the current situation surrounding the General Levy – the mechanism through which the Department for Work and Pensions extracts funding for The Pensions Regulator (TPR), the Money and Pensions Service (MaPS) and The Pensions Ombudsman (TPO).
What causes consternation is the sheer size of the levy hikes mooted by government
Last month the government closed its consultation on raising the general levy and to say that this concerns the PLSA Master Trust Committee would be something of an understatement.
Even before we see an increase, the 10 master trust pension schemes that form the committee – including The People’s Pension – are, liable for a quarter of the overall bill, despite only holding around 2 per cent of the occupational pension sector’s assets.
No-one disputes the importance of the levy – it is in everyone’s interests that the sector is well regulated – what causes consternation is the sheer size of the hikes mooted by government, and the unfair way the burden is shared currently across the industry.
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