As a member of the PPF, you’ll receive pension benefits from us rather than a pension from your former scheme. You’ll hear us call your payments 'benefits' or sometimes 'compensation' as we’re paying you compensation for the pension that you’ve lost.
This video explains how much members can expect to receive in PPF benefits (also known as ‘compensation’).
How much will you receive from us?
The level of benefits you'll receive from us is dependent on whether you had passed your normal pension age on the date your employer became insolvent. Your normal pension age is the age at which you are entitled to take your pension without facing any reductions according the rules of your former scheme.
Already passed your normal pension age?
If you had already passed your normal pension age when your employer became insolvent, or if you had retired through ill-health, you will receive a pension equal to 100 per cent of your scheme pension on the insolvency date. This also applies if you’re receiving pension benefits you had inherited from someone who died before their employer became insolvent.
If you've not yet reached your normal pension age
If you hadn’t reached your scheme’s normal pension age when your employer became insolvent you will see a reduction in your payments to 90 per cent of your scheme pension on the insolvency date.
Is the amount of compensation capped?
Following a court ruling in July 2021, the statutory limit on the amount of compensation we pay, known as the compensation cap, no longer applies. If you want to know more about the limits that applied before the ruling, you can still find out more about the compensation cap.
Will my pension payments increase?
In most cases, when we start to make payments to you, your payments relating to pensionable service from 6 April 1997 will rise in line with inflation each year, subject to a maximum of 2.5 per cent a year.
Sometimes there won’t be a rise in inflation and so your payments won’t increase. Sometimes inflation will fall but, if it does, your payments won’t be reduced. Payments relating to pensionable service before that date, including any applicable Guaranteed Minimum Pension (GMP) benefits, won’t increase. Find out more information on how we protect GMP benefits.
Increases are applied each year on 1 January and these have been:
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How to use our secure member website
If you're already a member you can find out everything you need to know about your pension payments by visiting our member website.
You can use the site to update your address and bank details or find out what your compensation payments might look like at different retirement ages.
If it's easier for you, then you can use our secure mailbox tool to get in touch with us anytime and we’ll get back to you within 48 hours.
Find out more
Read the booklets below or find more booklets on a range of topics on our member website.