Compensation

Broadly speaking, the Pension Protection Fund will provide two levels of compensation:

For individuals that have reached their scheme’s normal pension age, or irrespective of age, are either in receipt of survivor’s pension or a pension on the grounds of ill health, the Pension Protection Fund will pay 100% levels of compensation.

For the majority of people below their scheme’s normal pension age, the Pension Protection Fund will pay 90% level of compensation. This compensation is subject to an overall cap which equates to £27,770.72 at age 65. the cap is adjusted according to the age at which compensation comes into payment.

In each of the above cases, the part of the compensation that is derived from pensionable service on or after 6 April 1997 will be increased in line with the Retail Prices Index capped at 2.5%.