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In September this year, we issued an update on our work to implement the Court of Appeal’s ruling that the compensation cap was unlawful, and to pay arrears to pensioners due increases as a result of the Hampshire ruling. 

Since then, we’ve continued to make progress:

  • we’ve now paid arrears due to those FAS pensioners who’d already received a Hampshire increase, ahead of our target of the end of 2021

  • we no longer apply the cap to new PPF retirees

  • we’ve started the process to remove the PPF compensation cap and expect to scale up payments in the New Year 

Anticipated timescale 

Sue Rivas, our Director of Scheme Services, explains that the process of removing the compensation cap will take some time to complete: 

“I’m really pleased that we’re now processing members and have started to remove the PPF cap. But it’s going to be a long and complicated piece of work to complete. Uncapping is a complex process, particularly for those members who’ve already received a Hampshire increase, and we expect that it’ll take until the end of 2022 before we’re able to disapply it for the majority of currently-capped PPF pensioners.

“I understand that it’s a frustrating time for those affected PPF capped pensioners, especially if you haven’t heard from us yet. I assure you that we’re working through our processes as quickly as possible, so you don’t need to contact us. We’ll be in touch with you as soon we can.” 

Six-year time limit

We still need to finalise whether we’ll put a six-year time limit on arrears payments. We’re continuing discussions with DWP on this point, and hope to have more information soon. We’ll make an announcement on this as soon as possible. 

Find out more

Read our FAQs for PPF and FAS members for more information.