Coronavirus, a second lockdown, more furlough and seemingly a bleak outlook for winter pushed us to revisit the Pension Protection Fund this week. This is a compensation scheme for company pension schemes where employers become insolvent.
There are basically two types of pension in the UK that you employer may offer.
If you are a member of an occupational pension scheme and the sponsoring employer goes into liquidation thus dragging the pension scheme with it, the PPF scheme will usually take over.
In addition, depending upon when your pension benefits were built up, pensions in payment increases are:
Private Pensions Compensation
For private, personal pension type schemes, this would come into force if the pension company went into liquidation (not the employer) as the pension fund is in your sole name. The Financial Services Compensation Scheme woul then take over subject to similar 100% and 90% protection as above although there is no indexation as your pension fund is an investment and used to rise or fall in value with markets.
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WE DON'T LIKE BEING TRACKED SO WHY WOULD WE 'SPY' ON YOU?
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