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Pension Protection Fund

United Kingdom

The fund protects people with a defined benefit pension when an employer becomes insolvent. The Pension Protection Fund (PPF) was one of the measures set up by the Pensions Act 2004 in response to a series of high-profile cases in which pension schemes had wound up with insufficient assets to meet their pension commitments. It was established to pay compensation to members of defined benefit and hybrid occupational pension schemes where an employer has become insolvent, and where there are insufficient assets in the pension scheme to cover PPF levels of compensation.  It commenced operations on 6 April 2005 and applies to schemes whose sponsoring employer became insolvent after that date.

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Pension Protection Fund

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