If you're a pension professional, you'll find useful information about our factors on this page.
Please note: From time to time we review our factors and they may be changed without notice.
The circumstances in which commutation is possible are set out in Regulation 19 of the Pension Protection Fund (Compensation) Regulations 2005. Regulation 21 sets out how this option may be exercised.
The amount of lump sum payable, per £100 of compensation given up, is set out in our commutation factors table.
The amount of pension compensation payable early is calculated according to our commutation factors table. This applies to all compensation determinations for early retirement.
An individual, entitled to but not yet receiving compensation from the fund, may be able to postpone payment past their normal pension age.
The Pension Protection Fund (Compensation) Regulations 2005 permit the postponement of compensation and any separate lump sum is specified circumstances up to age 75.
The amount of pension compensation, payable late, is a calculated according to our late retirement factors table.
The amount of pension compensation, payable late, is calculated according to our late retirement factors lump sum table.
For an early retirement, the amount of early step-down pension compensation is calculated according to the factors in the early retirement factors table.
The compensation cap was used to assess the level of compensation that we paid to individuals.
Paragraphs 26 and 27 of Schedule 7 of the Pensions Act 2004 set out the circumstances in which the compensation cap applies and how and when it should be increased. In July 2021 the Court of Appeal ruled the PPF compensation cap was unlawful on the groups of age discrimination, so we're no longer applying it and we're removing it from affected PPF pensioners.
The compensation cap was also used in valuation calculations requited under Sections 179 and 143 of the Pensions Act 2004.
