GlobalAutoTV
Click to watch Franz Neumeyer -
Click to watch Franz Neumeyer -
euro resources


Need an office in Europe or Eastern Europe? Office suites, meeting rooms, virtual offices, network access




free downloads
EUROPE: "Doing Business in Russia 2008 - Guide"

EUROPE: "Doing Business in Russia 2008 - Guide". 138-page guide by Baker & McKenzie.

proceed to download
eJournals





back to index backEUROtalk March,  2005


UK Government raises taxes on pension plans

The U.K. government has issued draft regulations increasing various levies, or taxes, on company sponsored pension plans.


General levy

The general levy is a tax on pension plans to cover the costs of U.K. pension authorities and varies according to the number of members. It's been doubled for the year beginning April 2005. For example, the cost for an occupational plan with 15,000 members will rise to just over £11,000 (€16,000, $21,000).


Pensions Protection Fund (PPF) levies

These are three new taxes to be paid by defined benefit plans (including hybrid plans) and will be introduced starting in April 2005:

Administration levy. For the plan year beginning in April 2005 this will be at the same rate as the general levy.

PPF Ombudsman levy. Zero for the plan year beginning in April 2005, but we expect it will need to be raised in the future once officials begin responding to cases that come to their attention.

Funding levy. This is required to cover any funding shortfalls of plans transferred into the PPF. The initial amount payable for the year beginning April 2005 will be a flat rate per member: £15 (€22, $28) for active employees and current pensioners, and £5 (€7, $9) for former employees not yet retired.

In future years no more than 20% of the funding levy may be calculated as a flat rate, with the rest based on levels of plan underfunding and other risk-related factors. Plan sponsors may wish to assess how to minimize the impact of the levy by reviewing the levels of risk in their plans and the funding level relative to the PPF requirement. The initial funding levy is unlikely to be high enough to secure the PPF's liabilities over the long term, and sponsors of U.K. defined benefit plans can expect this cost to increase in future years.

Source: Towers Perrin - GAI


previous page

go top
search our site


Loading

EUROtalk

Other articles from the same issue (March,  2005).

European car options lists spiral upwards
play read on

Making the most of your assignment
play read on

Can Europe Find Consensus on Reforming the Stability and Growth Pact?
play read on

Turkey: Seeking new export markets
play read on

UK Government raises taxes on pension plans
play read on

Multinationals revising long-term incentive programs for executives outside the U.S.
play read on

Germany: Of future contracts and deflation spirals
play read on

Hungary: Labour market risk
play read on

UK: Five year plan to revamp the work permit system
play read on

Morocco, The Automotive Gateway to Europe
play read on

Planned German company tax reform
play read on

Board Insights 2004: What Europe's Directors Think
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120