Commutation Factors 


A person entitled to, but not yet in receipt of, compensation from the Pension Protection Fund may be entitled to commute some of their compensation for a lump sum with effect from the time that the compensation becomes payable.

The circumstances in which commutation is possible are set out in Regulation 19 of the Pension Protection Fund (Compensation) Regulations 2005.

The manner in which an option to commute may be exercised is set out in Regulation 21 of the same regulations

The amount of lump sum payable per £100 of compensation given up is set out in two tables via the link below:

Commutation Factors from 1 April 2015

September 2016 - We have decided not to implement the factor changes that we had planned for October 1st. We regularly check and update our actuarial factors to ensure the PPF is financially no better or worse off if people choose to take options such as early retirement or a lump sum. We had planned to move to the new factors from October 1st. However, given market movements we have concluded that they would no longer be actuarially neutral. The factors currently in place are a much better reflection of current market circumstances.

The commutation factors will be reviewed from time to time and may be changed without notice.

Factors that were valid for previous periods are also available.