We don’t take on a pension scheme as soon as an employer becomes insolvent. Instead we start what we call the ‘assessment period’. This is when we and others work to make sure all the data is accurate and that members are receiving the right benefits.
We also need to obtain a valuation to find out if the scheme has enough assets to secure PPF levels of benefits. This work has to be done before the scheme can be taken over, or ‘transfer’, to us. It is a complicated process and takes on average two years to complete.
If we didn’t exist you would only receive a share of what was left in the scheme, which might be very little.