In our recent update about progress on uncapping PPF compensation, we still had to finalise whether to put a six-year time limit on arrears payments due to PPF and FAS pensioners. This followed the Court of Appeal’s judgments on the methodology for implementing the ECJ’s Hampshire decision and the PPF compensation cap. The Department for Work and Pensions (DWP) and our Board have now finalised those decisions.
The Board has confirmed that we won't put a time limit on payments of Hampshire or uncapping arrears. We’ll pay arrears from the time that affected members started to receive compensation.
Although the FAS cap wasn’t affected by the Court of Appeal’s ruling, some members are entitled to Hampshire arrears to make sure that they receive 50 per cent of the value of their accrued old age benefits.
We’re the scheme manager for FAS on behalf of DWP. DWP has now confirmed that it will not put a time limit on the payment of Hampshire arrears for members. They also confirmed that interest won’t be paid on the arrears, because there’s no legal basis to do so.
We’re working hard to complete the payments due as a result of the court rulings. It’s a long and complicated piece of work, and we expect it’ll take until the end of 2022 for us to complete the majority of the payments.