A scheme won’t transfer to the PPF if:
- it’s rescued – for example, a new employer takes on responsibility for the scheme, or
- it has enough assets or money to buy benefits with an insurance company, which are at PPF compensation levels or above.
If your scheme goes into the PPF, you will get a of compensation.
If you were over your scheme’s normal retirement date when your employer went out of business, your pension will be paid in full. This also usually applies if you retired through ill-health or if you are getting a pension in relation to someone who has died.
If you were under your scheme’s normal retirement date at the time your employer went out of business, you’ll receive a pension of around 90% of the value of the one you were promised.
Annual increases in compensation might be different to the increases you would have got from your pension scheme.
The PPF was set up by the government in April 2005. If you were a member of a defined benefit pension that started to be wound up between 1 January 1997 and 5 April 2005, you might be protected by the Financial Assistance Scheme (FAS).