Pension Protection Fund takes on 15 insolvent schemes
by Gill Montia
The Pension Protection Fund (PPF) took over 15 insolvent pension schemes during August.
Fifty-seven schemes have transferred to the fund since it was established in 2005 to compensate members of schemes belonging to companies that have been placed in administration.
The latest batch of transfers brings a further 3,597 people into the PPF’s remit, increasing the number of people who receive compensation, or will do in the future, to 15,935.
The fund’s average annual payment to an individual is £4,700 and the bill for September will total around £2.3 million.
The PPF currently has 210 schemes under assessment, with 125,000 members between them, and the economic downturn will inevitably swell the ranks of its dependants, although it takes at least a year before failing schemes are fully absorbed by the body.
Joiners who have already reached their pensionable age receive 100% of their payments, whereas those who have yet to retire are guaranteed only 90% of their accrued benefits.