12 September 2018
The Court of Justice of the European Union has ruled that Pension Protection Fund compensation is not sufficient to protect the benefits of scheme members.
In particular, application of the compensation cap and the lack of increases in payment to pension accrued before April 1997 can lead to the value of PPF compensation dropping below half of the value of the member’s original scheme pension, which the CJEU deems unacceptable. The PPF is working with the DWP to establish a revised compensation arrangement, but there are knock-on effects for schemes as their priority orders on wind-up change.
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