Pension Protection Fund Pays Out
Published / Last Updated on 15/05/2008
Pension Protection Fund Pays Out
More than 12,100 people are receiving compensation from the Pension Protection Fund (PPF), or are in line to receive it. They have said they are paying out £1.4m a month in compensation to members who have already retired. They also said that 41 pension schemes whose sponsors had gone bust have transferred into the PPF after completing its assessment period.
Out of 59 schemes that have been completed the PPF assessment period, 41 have transferred in, 12 were rescued where a new employer agreed to support the scheme and 6 did not enter because the could pay more than PPF levels of compensation and opted for buyout instead.
Our view
The Pension Protection Fund is doing what it was set up to achieve although we suggest the position will worsen with an economic slowdown and more employer sponsored schemes possibly going into liquidation.
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