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How we calculate the levy

The levy is made up of the scheme-based levy and the risk-based levy. Here we explain how we calculate each component.

Insolvency risk scores

Use our portal to check the insolvency risk scores used to calculate your levy invoice.

How we set the levy rules

The framework for the levy rules is set out in legislation (Pensions Act 2004). We review and consult on how we apply these rules each year. 

Is your scheme eligible?

Almost all defined benefit occupational pension schemes, and schemes that have defined benefit elements, are eligible.

Introduction to the levy

Similar to an insurance premium, the amount of levy each scheme pays is primarily based on the risk of its sponsoring employer becoming insolvent. A small portion of the levy we collect is based on the size of the scheme. 

Eligibility application form submission

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Paying your levy

Find out more about your invoice or how to pay it.

2021/22 levy year

Invoices for this levy year will be issued in autumn 2021. Find out more information about our insolvency risk partner D&B, and how you can shape our levy rules here.