How big is the Pension Protection Fund?
It’s our duty to protect people with a defined benefit pension when an employer becomes insolvent. We manage £38 billion of assets for our 288,000 members.
How much does the Pension Protection Fund cover?
Members who have not reached the scheme’s normal pension age at the assessment date will receive up to 90% compensation on reaching the normal pension age of their scheme. Members who have retired but have not reached their normal pension age at the assessment date will also receive up to 90% compensation.
Who runs the Pension Protection Fund?
We’re a statutory public corporation led by our board and accountable to Parliament through the Secretary of State for the Department for Work and Pensions.
How is the Pension Protection Fund funded?
We collect a compulsory levy, much like an insurance premium, from eligible defined benefit pension schemes. We also fund ourselves by accepting the assets of schemes that transfer to us and recovering what we can from their insolvent employers.
Who is the largest pension provider in the UK?
Royal London is one the largest mutual life, pensions and investment companies, offering personal and workplace pensions. The Group has around £100 billion funds under management.
Is PPF capped?
In July 2021 the Court of Appeal ruled the PPF compensation cap was unlawful on the grounds of age discrimination. They supported our approach to increasing payments to PPF and FAS members following the 2018 European Court of Justice judgment in the Hampshire case. We’ve been working on how to implement it.
Are Pensions protected by the government?
A government agency called the Pension Benefit Guaranty Corporation (PBGC) provides pension insurance. This can protect your pension benefits and make sure you have a steady income after you retire. The PBGC insures the benefits of 35 million Americans. It doesn’t receive money through general taxes.
Can I transfer out of the Pension Protection Fund?
No. You are unable to do a transfer out of the pension protection fund, the pension freedom does not apply with PPF. You are unable to make transfers or drawdown/ withdraw cash lump sums before retirement.
Which UK companies have the best pensions?
Best and worst-funded pensions
| Name | Rank | Funding Level |
|---|---|---|
| Standard Life | 1 | 151% |
| Royal Mail Group | 2 | 147% |
| Old Mutual | 3 | 147% |
| 3i | 4 | 125% |
Why are teachers pensions so good?
Each time you get paid, you pay contributions towards the cost of your pension. Your employer contributes towards the cost and the government also helps out through tax relief, as you don’t pay tax on pension contributions. Your pension is one of the most important benefits available to new teachers.