Commentary on Sections Summary The Levy Section 177: Amounts to be raised by the pension protection levies
649.This section sets out restrictions on the amounts to be raised by the pension protection levies.
650.Subsection (1) states that the Board must, when determining the pension protection levies, estimate the amount which will be raised by the levies it proposes to impose. Subsection (2) states that the Board must not impose levies for a financial year in a form which it estimates will raise an amount exceeding the levy ceiling (as outlined in section 178) for the financial year. Subsection (3) provides that 80% of the pension protection levies raised in any one financial year must be raised by the risk-based levy. Subsection (4) provides that regulations may modify the levy ceiling for the first financial year after the transitional period provided for by section 180. Subsection (5) provides that, in the second financial year after the transitional period and for any subsequent years, there shall be a restriction on the maximum amount of pension protection levies. The amount raised cannot exceed the amount raised in the previous year by more than 25%. This percentage can be modified by an order made by the Secretary of State, but he must consult appropriate persons before making such an order.