The Fraud Compensation Fund (FCF) was established under the Pensions Act 2004 to provide compensation to occupational pension schemes, with insolvent employers, that suffer a loss that can be attributable to an offence involving 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. It does not apply to state retirement pensions.
The FCF is funded from the Fraud Compensation Levy raised on eligible pension schemes. The assets held in the Fund are managed by the Board in accordance with a Statement of Investment Principles.
For more information on the process, please refer to our booklet All You Need to Know About the Fraud Compensation Fund.
You can also view the FAQs to the right and all other FAQs on the Fraud Compensation Fund.
Applications to the Fraud Compensation Fund should be made on the Fraud Compensation Fund Application Form.
Fraud Compensation Levy
The Board is not obliged to raise a levy each year, and at present, the Board believes there are sufficient funds available to cover forecast claims. Therefore, for 2014/15, no levy will be raised.
The Board will keep this matter under review for future levy years.