Pension Protection Fund

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23/02/1900

Compensation cap for 2010/11

Where a member, subject to the PPF, has not reached “normal pension age” (ie the earliest age at which benefits could be taken from the scheme without actuarial reduction) by the time the assessment period of the PPF commenced, his/her benefits will be limited to 90% of the scheme benefits accrued up to the date of discontinuance and will be subject to a cap. The cap is set out in regulations.

The DWP has issued a draft of the Pension Protection Fund (Pension Compensation Cap) Order 2010, which is due to take effect from 1 April 2010 and which specifies the cap applied from that date as £33,054.09. This is to achieve a cap which is effectively £29,748.68 at the 90% compensation level.

This document is strictly for general consideration only. Consequently Capital Ideas cannot accept any responsibility for any loss occasioned as a result of any action taken or refrained from as a result of the information contained in it. Each case must be considered on its own facts after full discussion with the client's professional advisers

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