A person entitled to, but not yet in receipt of, compensation from the Pension Protection Fund may be entitled to early payment (i.e. earlier than normal pension age/normal benefit age) of compensation.
The circumstances in which early payment is possible are set out in Regulation 2 of the Pension Protection Fund (Compensation) Regulations 2005.
For all PPF compensation determinations in respect of an early retirement with an effective date on or after 1 April 2015 the amount of periodic compensation (i.e. pension) payable early is calculated according to the table in the link below:
Early Retirement Factors from 1 April 2015 - Periodic Compensation
The amount of lump sum compensation payable early (in circumstances where lump sum is a separate entitlement from pension under the scheme, rather than derived by commuting pension) is calculated according to the table in the link below:
Early Retirement Factors from 1 April 2015 - Lump Sum
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 early retirement factor is applied to the compensation before the compensation cap is applied.
The early retirement factors will be reviewed from time to time and may be changed without notice.
Factors available for previous periods are also available.