The Fraud Compensation Fund was established under the Pensions Act 2004 to provide compensation to occupational pension schemes that suffer a loss that can be attributable to dishonesty.  The Fraud Compensation Fund became operational on 1 September 2005 and replaces the former Pensions Compensation Board.  It applies to most defined benefit and defined contribution occupational pension schemes – apart from those specifically excluded in the Pensions Act 2004.  It does not apply to state retirement pensions. 

These web pages provide general information about the Fraud Compensation Fund. It is not an authoritative statement of law. Full details on the basis on which fraud compensation can be paid are set out in the Pensions Act 2004 and regulations made under it the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations 2005.

The Fraud Compensation Fund is a statutory fund run by the Board of the Pension Protection Fund (the Board), a statutory corporation established under the Pensions Act 2004.

The Fraud Compensation Fund is funded from the Fraud Compensation levy raised on eligible pension schemes.  The assets held in the Fund will be managed by the Board in accordance with a Statement of Investment Principles.

Applications to the Fraud Compensation Fund should be made on the Fraud Compensation Fund Application Form.  For more information on the process, please refer to the FAQs to the right and all other FAQs on the Fraud Compensation Fund.