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Pension levy 2024-25
PENSION LEVY 2024-25 FACT SHEET
The Financial Reporting Council (FRC) serves the public interest by setting high standards of corporate governance, reporting and audit and by holding to account those responsible for delivering them. The FRC's powers come primarily from the Companies Act 2006 (CA 2006) and the Statutory Auditors and Third Country Auditors Regulations 2016.
The FRC sets the UK Corporate Governance Code and UK Stewardship Code, UK accounting standards (UK GAAP) and actuarial standards; promotes high quality of corporate reporting; sets audit and ethical standards for auditors; monitors and enforces audit quality; and operates independent enforcement arrangements for accountants and actuaries; supervises and oversees relevant professional bodies.
The FRC carries out these responsibilities under the sponsorship of the Department for Business and Trade (DBT).
Our actuarial responsibilities
Following the Morris Review of the Actuarial Profession, published in March 2005, HM Treasury asked the Financial Reporting Council (FRC) to take on responsibility for oversight of the regulatory activities of the Institute and Faculty of Actuaries (IFoA) and the independent setting of technical actuarial standards.
The FRC seeks to promote high quality actuarial practice and the integrity, competence, and transparency of the actuarial profession to the benefit of all those who rely on actuarial advice.
The FRC is responsible for:
- The setting and maintenance of Technical Actuarial Standards, the Actuarial Standard Technical Memorandum 1 and the Actuarial Statement of Recommended Practice 1.
- Oversight of the regulation of actuaries by the Institute and Faculty of Actuaries (IFoA). The IFoA sets ethical and professional standards for its members, subject to independent oversight by the FRC.
- Operating independent disciplinary arrangements for actuaries. The FRC's Actuarial Scheme covers Members of the Institute and Faculty of Actuaries. The FRC will commence an investigation into a member if the case raises or appears to raise important issues affecting the public interest in the UK; and there are reasonable grounds to suspect that there may have been misconduct.
We work closely with the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), the Pensions Regulator and the IFoA.
Basis for the Pensions Levy
We request an annual contribution from pension schemes in the form of a voluntary levy as part of the arrangements agreed by HM Treasury for funding the FRC's responsibilities for actuarial standards and regulation.
The FRC's levies are currently operated on a non-statutory basis. Should this approach prove unsustainable, the FRC may request that the Secretary of State make regulations for the FRC to levy its funding on a statutory basis under Section 17 of the Companies (Audit, Investigations and Community Enterprise) Act 2004.
The Pensions Act 2004 (Disclosure of Restricted Information) (Amendment of Specified Persons) Order 2006 enables the Pensions Regulator to provide the FRC with the information needed to calculate the amount of the levy for individual schemes.
Calculation
The pension levy is currently applied to all schemes with 5,000 or more members at the rate of £2.80 per 100 members. We use the latest information on the total membership for each scheme provided to The Pensions Regulator in scheme returns. The levy is applied to occupational and personal pension schemes and public service pension schemes.
Purchase orders
A number of organisations provide the FRC with a Purchase Order (PO) number to facilitate the payment process. In general, the Purchase Order number has been provided by the Pensions Manager or the scheme Trustees.
Contact Us
If you have a query, please contact the Levy Collection Team at Adetiq on [email protected] or 01273 764 511.
If you have a policy related question on the levy, please email us on [email protected]
Financial Reporting Council
July 2024
8th Floor, 125 London Wall, London EC2Y 5AS Tel: +44 (0)20 7492 2300 Fax: +44 (0)20 7492 2399 www.frc.org.uk The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered office: as above.