Plan and Budget 2008-09
Sub-class C1 Life & pensions - provision |
£1m 2008/09 estimated gross initial funding requirement |
Cost drivers |
Their share of FSCS management expenses. |
Any credit or debit from previous contribution groups? |
YES - estimated CREDIT for firms in A4 (£0.1m) and A16 (£7.8m). The A16 credit reflects our estimate of life and pension providers' share of the likely favourable fund balance for A16 IFA pensions review claims at 31 March 2008. |
What will firms in this Sub-class pay? |
The net amount to be paid by individual firms is the difference between their share of the £1m funding requirement, according to their 2008/09 tariff data, less any credit in respect of their membership of A4 and A16. This is expected to result in a refund to most firms.* |
Based on current claims estimates, life and pensions providers in the previous contribution groups A4 and A16 will benefit from a fund balance credit of some £7.9m from those contribution groups at 31 March 2008.
This credit largely relates to pensions review claims, and marks the end of the ring-fenced group A16 (IFA pensions review claims). The refund is also due to a small positive fund balance for claims relating to the previous contribution group A4 (estimated at £0.1m).
* Firms will only receive credit or debit notes from previous contribution groups if they were a member of a previous contribution group from 1 April 2007. Details of the transition rules are available from the FSA (PS07/19, FSCS Funding Review - Feedback on CP07/5 and made text).
