We protect the futures of millions of people in the UK who are members of a type of workplace pension scheme called a 'defined benefit pension scheme'.

Over 270,000 people already receive benefit payments from us, instead of from their pension scheme. This is because the employer who funded their scheme became insolvent and there weren't enough funds to secure benefits for its members which were at least equal to PPF compensation. 

Many more people are likely to receive benefits from us in the future. If you're a member of a defined benefit pension scheme you could be one of them.

What is a defined benefit pension scheme?

A defined benefit pension is a workplace pension based on your salary and how long you’ve worked for your employer.

The amount of pension you’re paid from a defined benefit scheme relates to your earnings when you leave the scheme or retire, and how many years you worked for your employer. For this reason, defined benefit pension schemes are sometimes known as ‘final salary’ or ‘career average’ pension schemes.

Your employer will make contributions to your defined benefit pension scheme and is responsible for making sure there’s enough money at the time you retire to pay you a secure income for life.

When you can start taking your pension depends on your pension scheme’s rules - it’s usually at the age of 55 at the earliest.

Schemes we don’t protect

You may have a kind of pension where the money paid in by you or your employer is used to buy investments - such as shares or bonds - by the pension provider. This is known as a defined contribution or ‘money purchase’ pension scheme.

The amount you get when you retire depends on how much was paid in and how well the investments have performed. We don't protect this type of pension scheme.

Other schemes we don’t protect include public sector pension schemes. 

Read more about whether your scheme is eligible for our protection.


Where else to get help with your pension

If you have a scheme we don't protect you can find more information about your pension rights here:

You can also find information and guidance about your state pension, workplace and private pensions and different ways of working later in life on the government's Get To Know Your Pension site.