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Compensation cap factors valid for previous periods

Paragraphs 26 and 27 of Schedule 7 of the Pensions Act 2004 set out the circumstances in which the compensation cap applies and how and when it should be increased. In July 2021 the Court of Appeal ruled the PPF compensation cap was unlawful on the grounds of age discrimination, so we’re no longer applying it and we’re removing it from affected PPF pensioners.  The information below is provided for advisers who still need to refer to previous calculation tables and factors.

Scheme trustees

We work with scheme trustees and their advisors when a sponsoring employer is in financial distress or facing a major change or ‘event’ – such as a restructuring arrangement or potential insolvency – which might trigger the entry of an eligible scheme into PPF assessment. 

Restructuring professionals and insolvency practitioners

Find out more about contingency planning, restructuring proposals and submit S120 and S122 notifications. 

The role of trustees during assessment

The role and responsibilities of panel trustees include:

Practical tips to help trustees manage risk

Running a pension scheme can be complex and challenging. This is particularly true where the employer is in difficulty. It's important that as a trustee, you understand the sorts of challenges you’ll face when there’s an increased risk of your employer going bust.  So we've published a new guide, Contingency planning for employer insolvency, to help you.

Appointing an independent trustee

Learn about the role of trustees during an assessment period and how a panel adviser can help you through it.

The insolvency practitioner's role in the assessment process

The assessment period starts with a qualifying insolvency event. You must file notice of the insolvency – an S120 notice – within 14 days of your appointment or of becoming aware of the existence of the pension scheme. Without that, it’s not possible to make a start on the work that needs to be completed during the assessment period. By law, we exercise the trustees’ rights against the employer during the assessment period. So we need to know about the insolvency as soon as possible.

What happens if your employer becomes insolvent

Find out more about what happens if your employer becomes insolvent and the PPF assessment period.

How to make a complaint

What to do if you want to make a complaint or request a review of a decision we’ve made.

Stewardship policy

The policy should be considered alongside our Statement of Investment Principles (SIP), our Climate Change Policy and our overall RI framework and strategy. The SIP is the written statement governing our decisions about investments, and reflects the objectives and timeframes of our current and future beneficiaries and stakeholders.