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
Fraud compensation levy
We’re not obliged to raise a levy each year, but as we’re aware of a number of potential future claims we’ve decided to raise a levy in 2020/21. As we have done since 2018/19, we’ve set this at 25p per member.
The funds raised through the levy will make sure we’re prepared for potential claims while spreading the cost to levy payers over time. 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 site.
Get in touch
If you’d like to find out more about the Fraud Compensation Fund and how we can help you:
- Call us on: 0345 600 2541
- Email: [email protected]
Write to us at:
Pension Protection Fund,
12 Dingwall Road,