If you're a member of a scheme that has lost out due to dishonesty, you may be able to claim compensation.

  • your employer has become insolvent or is unlikely to continue as a going concern
  • your pension scheme can’t be rescued
  • your scheme has lost funds because of an offence involving dishonesty

Please note that we can only pay out compensation directly to the scheme trustees.

How to apply 

You need to download and complete the Fraud Compensation application form.

Who can apply

Any trustee, scheme manager, member or beneficiary can make a claim but if it’s successful we can only pay out directly to the scheme trustees. Read more about this here.

When a claim can be made

You can apply within an authorised period which is 12 months from the latest date of either:

  • the date of your employer’s insolvency or when your employer stopped being a going concern, or
  • the time when the trustees, scheme managers, accountants or scheme actuaries discovered that the scheme had made a financial loss because of offences involving dishonesty

In exceptional circumstances we will accept applications outside the authorised period, but you’ll need to provide evidence of what caused the delay.

Once you have made a claim 

After we’ve received your claim, we’ll let you know if we need any more information and let you know how it’s progressing.

Unfortunately the process can take a long time because, by law, we have to make sure that all possible recoveries have been investigated and recouped before we can complete your claim.

If your claim is successful 

We’ll send a determination letter to the trustees, with a copy to the applicant, explaining the amount, terms and conditions of the compensation payment.

Once the trustees have agreed our terms and conditions, we will make the payment to them.

How we calculate fraud compensation

Put simply, the calculation is based on what an accountant says is the difference between the value of the scheme’s assets before the loss and the value of the assets before the application date.

You can find more details about this in section 185 of the Pensions Act and regulation 7 of the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations 2005.

How the fund is invested 

Read our Fraud Compensation Fund Statement of Investment Principles.

Fraud compensation levy

We’re not obliged to raise a levy each year, but we’ve received a number of claims with a total value of over £40 million. We expect to receive more from schemes that have been confirmed through a court judgment in November 2020 as eligible to apply for compensation. 

We confirmed in our 2019/20 Annual Report that the FCF had assets of £21.5 million, so we’ve decided to raise a levy in 2021/22. We’ve set this at 75p per member, and 30p for master trusts.  

We’ll keep this under review for future levy years.

To learn more about general pension scheme levies or to get help and support with payments, please visit The Pensions Regulator's website. 

Get in touch

If you’d like to find out more about the Fraud Compensation Fund and how we can help you:

Write to us at:

Pension Protection Fund,
12 Dingwall Road,