Eligible pension schemes are required to pay the levy. Almost all ‘defined benefit’ occupational pension schemes and schemes that have defined benefit elements are eligible.

Read more about which schemes are eligible

What are defined benefit schemes?

Generally, your scheme is a defined benefit scheme if it’s promised to provide a certain amount of pension for its members at retirement, for instance, if it's a final salary scheme.  

How the levy is calculated

The levy is calculated based on risk factors, in a similar way to insurance premiums.

Learn more about how the levy is calculated

Read the levy rules

The levy rules direct how we calculate your levy and treat your data.

Read and download the levy rules here

How your levy has been calculated for 2018/19

Find out the levy scaling factor, scheme based levy and risk-based levy cap for 2018/19

See what’s changed in the levy calculation

What is the risk-based levy?

The risk-based levy is paid by all eligible schemes that are not fully funded.
Read more about the risk-based levy

What are contingent assets?

Contingent assets can reduce the risk of the scheme entering the PPF.

Learn more about contingent assets

What are deficit reduction contributions?

These are extra payments you can make to reduce the shortfall of funding in a pension scheme.

Find out more about deficit reduction contributions

Past levy rule determinations

We review and consult on how we apply the levy rules each year.

View previous years’ levy rules