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Will my payments increase?

On this page, you can find out more information about annual increases for PPF and FAS members.

As a PPF member, you’ll receive pension payments or ‘compensation’ from us rather than a pension from your former scheme.

As a FAS member, you’ll receive assistance from us rather than a pension from your former scheme.

There are several factors that affect how much compensation or assistance you’ll receive from us and whether your compensation will increase over time.

One of these factors is indexation. Indexation is the term used to describe the annual increase you may get on your compensation, once it’s in payment, based on changes in inflation.

What being a PPF member means
What being a FAS member means

How your payments could be affected by indexation

PPF members

The indexation we can pay is governed by legislation. It also differs based on when you accrued your pension, also known as your pensionable service.

For service accrued after 6 April 1997:

Your PPF payments will rise in line with the Consumer Prices Index (CPI) measure of inflation each year, up to 2.5 per cent a year.

If CPI inflation falls below 0 per cent, your compensation will not be reduced.

Our Board has the discretion to change the level of indexation applied to payments. To date, the Board has decided not to exercise its discretion to vary the rate of indexation.



Increases are applied each year on 1 January and these have been: 



Year

Increase (p/a)

Year

Increase (p/a)

2016

 0.1%

2021

0.5%

2017

 0.3%

2022

2.1%

2018

 2.5%

2023

2.5%

2019

 2.4%

2024

2.5%

2020

 2.0%

2025

2.0%

For service accrued before 6 April 1997:

Your PPF payments will not increase. Our Board hasn’t got any powers to pay indexation on compensation related to service before 6 April 1997. This would require changes to legislation, which is a matter for the government.   

FAS members

For members of the Financial Assistance Scheme (FAS), we work out your annual payment based on details provided by your former scheme.

This annual payment is reviewed each year and some elements may be increased in line with inflation to a maximum of 2.5 per cent.

The Board of the PPF hasn’t got any powers to change indexation levels for the FAS. We administer the FAS on behalf of the government. Changing levels of indexation that applies to FAS members is a matter of legislative change for the government.

How we calculate any increases will differ depending on the type of FAS member you are. If you want to find out more, contact us.  

What it means to be a member of the PPF

Everything you need to know about being a member of the Pension Protection Fund.

Frequently asked questions about the European Court of Justice Hampshire ruling for PPF members

Find out more about how the European Court of Justice Hampshire ruling effects PPF members and get answers to the most commonly asked questions. 

Frequently asked questions about the European Court of Justice Hampshire ruling for FAS members

Find out more about how the European Court of Justice Hampshire ruling effects FAS members and get answers to the most commonly asked questions.