This article summarises the current status, so far as is known, of a number of draft pensions regulations which have been published in the past year, most of which have still to become law. We start, however, with a few which have been laid or issued in draft very recently.

1. The Local Government Pension Scheme (Transitional Provisions) Regulations 2008 (SI 2008/238) and The Local Government Pension Scheme (Administration) Regulations 2008 (SI 2008/239) were laid before Parliament on 14 February and come into force on 1 April 2008. The next article to appear on this site will discuss these regs in more detail.

2. The Occupational Pension Schemes (Levy Ceiling - Earnings Percentage Increase) Order 2008 (SI 2008/217) merely specifies - as required by PA 2004 s.178 - that the general level of earnings increased by 3.6% in the 12 months to 31 July 2007.

3. The Occupational Pension Schemes (Levy Ceiling) Order 2008 specifies that the levy ceiling (ie the maximum PPF levy) for the financial year beginning on 1 April 2008 is £833,410,200. This is obtained by applying the 3.6% increase ordered via the previous SI to the levy ceiling for the current financial year ie £804,450,000 (SI 2007/1012). PA 2004 s.178(3)(a) provides that the levy ceiling must increase in line with any increase in the general level of earnings obtaining in Great Britain. However, this Draft Order has to be formally approved by both Houses of Parliament.

In the coming year the Board of the PPF will operate well within this limit, in practice. The amount it considers it will need to raise in levies in 2008/09 is £675m.

Today, incidentally, the PPF published the Board's determination for the 2008/09 levy year, which sets out the factors and times by reference to which the levies are to be assessed, and the rates of the levies. The figures are unchanged from the indicative ones we reported in December 2007, although the crucial levy scaling factor and the scheme-based levy are not to be confirmed until May, after data from schemes has been received.

4.(a) The draft Occupational Pension Schemes (Levies) (Amendment) Regulations 2008

(b) The draft Occupational Pension and Personal Schemes (General Levy) (Amendment) Regulations 2008

(c) The draft Pension Protection Fund (Payments to meet Risk-based Administration Costs) Regulations 2008

A DWP consultation on these three sets of draft regs closed on 31 January 2008 (See Aries article).

(d) The draft Pension Protection Fund (Miscellaneous Amendments) Regulations 2008

This consultation closed on 12 February 2008 (See Aries article).

5. The Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order, relating to bridging pensions, was published in draft by HMRC on 4 February 2008.

The rules in FA 2004 Sch 28 governing scheme pensions require that the pension may not be reduced except in specified circumstances, one being where a member reaches state pension age and receives their state pension. A reduction is allowed where the result is that the member continues to receive the same total income. The problem addressed by this draft SI is that prior to 6 April 2006 some schemes allowed greater reductions than are permitted under FA 2004.

The effect of this SI is to ensure that where pensions that were in payment before 3 July 2007 are reduced in accordance with their pension scheme's pre-6 April 2006 rules, and this reduction is greater than would be permitted otherwise, then the member will not be subject to any unauthorised payments charge. The scheme sanction charge will not apply either.

This Order is made under FA 2004 s.283(3C) (inserted by FA 2006 Sch 23 para 35(2)), which allows for such instruments to have retrospective effect. It amends the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (SI 2006/572) by inserting a new article 5A. This modifies FA 2004 Sch 28 para 2(4) to allow a further case where payment of a reduced pension will qualify as a "scheme pension".