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The Pension Protection Fund (PPF) has updated its Restructuring Principles and Guidance for Insolvency Professionals.
In order to ensure employers do not ‘dump’ schemes in the PPF, the organisation works closely with The Pensions Regulator to ensure any scheme that enters the PPF is the subject of an actual or inevitable employer insolvency.
The guidance documents set out the criteria that should be incorporated in any proposals made in respect of a sponsoring employer suffering an insolvency event. The PPF is not obliged to consider a restructuring proposal, and to do so, the criteria must be met. The documents also provide information on the roles and responsibilities of insolvency practitioners throughout the PPF assessment process.
Malcolm Weir, Head of Restructuring & Insolvency at the Pension Protection Fund said:
“Regulated Apportionment Arrangements are rare and we do not agree to them lightly. We will only support such proposals if they provide a significantly better return for the pension scheme than it would receive through the normal insolvency process. These arrangements can sometimes be controversial, so we feel it is important that people have a better understanding about our approach to them.”
Notes to Editors
The Pension Protection Fund:
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. Tens of thousands of 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:
PPF Press Office
020 7566 9775
[email protected]