The Pension Protection Fund is a compensation scheme run by an independent board to protect the pension promise made by occupational defined benefit pension schemes. It became operational in April 2005 and provides compensation where a company with a defined benefit pension scheme becomes insolvent and its pension fund is not sufficiently funded.

Scheme members still receive the core of the benefits to which they were entitled covering 100 of the original pension promise for people who have reached the schemes pension age and 90 for people below that age.

The Pension Protection Fund also includes indexation of pensions in payment on rights built up after 97 in line with RPI capped at 2.5 and revaluation of all deferred rights in line with RPI capped at 5 to ensure the PPF compensation retains its value over time and provides a meaningful level of retirement income. It also hopes in most cases to offer survivors benefits for married and civil partnerships.

Pension Protection Fund

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