The PPF, which runs the Fraud Compensation Fund (FCF), has been notified of a number of possible claims which may come to the FCF in the next few years. Therefore, with forward planning in mind and to smooth the impact to schemes over time, the PPF is raising a levy of 25p per member – the same as in 2012/13. The levy is expected to raise around £5 million in total.
The FCF pays compensation to eligible work-based pension schemes – including defined contribution (DC) – where the employer is insolvent and the scheme has lost out due to offences involving dishonesty.
The levy is collected by The Pensions Regulator alongside its general levy. The collection process began on 1 April.
Find out more about the Fraud Compensation Fund
Notes to editors
The Pension Protection Fund protects millions of people throughout the United Kingdom who belong to defined benefit pension schemes. If their employers go bust, and their pension schemes cannot afford to pay what they promised, the PPF will pay compensation for their lost pensions. Over a hundred thousand people now receive compensation from the PPF and hundreds of thousands more will do so in the future. The PPF is a public corporation, set up by the Pensions Act 2004, and is run by an independent Board.
For further press information contact:
The PPF Press Office
020 7566 9775