Following a concerted campaign by the Association of Member-Directed Pension Schemes (AMPS), the Department for Work and Pensions has agreed not to impose an £10,000 levy per scheme for small schemes, its original preferred option 3. Instead, the current structure will be retained, with a general increase of 6.5% to the levy.
This is of great relief to those holding or providing small occupational pension schemes for fewer than 12 members (SSAS), and AMPS should be congratulated on achieving this change to policy.
What it demonstrates is the power of engagement, the worth of industry groups, and the reason why responding to policy consultations is important. On this occasion there were so many responses that unusually the list of respondents has not been published.
At Burges Salmon we are proud to support the development of pensions law and regulation through direct responses to consultation and more commonly through committee work for bodies such as the Association of Pension Lawyers (APL), Pensions Management Institute (PMI), and others. We are also happy to assist clients with responses to relevant consultations - a current key example being the consultation on Options for Defined Benefit Schemes.
Following consideration of these comments, the government decided to proceed with option 2 in the consultation document.