Under what conditions will the Pension Protection Fund assume responsibility for my pension scheme?
Having established that your scheme is eligible for the Pension Protection Fund, your scheme must then satisfy the qualifying conditions.
An assessment period will be triggered if there is a qualifying insolvency event in relation to your employer. During this period, the Pension Protection Fund will decide whether it must assume responsibility for the scheme.
In particular the Pension Protection Fund will be looking to see if the scheme can be rescued and also whether the scheme has sufficient assets to secure benefits on wind up that are at least equal to the compensation that the Pension Protection Fund would pay if it assumed responsibility for the scheme.
The assessment period will take at least one year during which time the scheme will continue to be administered by the trustees subject to various restrictions and controls. The actual timing will be driven by the time taken to determine the eligibility of the pension scheme to be transferred to the Pension Protection Fund.
Published: Wednesday, April 06, 2005
Associated Subjects: Assessment Period;Compensation
Associated Roles: Scheme members
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