 Qualifying Conditions
The Pensions Act 2004 sets out the conditions that must be met for the Pension Protection
Fund to assume responsibility for a scheme (detailed guidance will be available on this site shortly).
In high level terms, in order for the Pension Protection Fund to assume responsibility
for a scheme, the scheme must satisfy the following key criteria:
a) the scheme must be a scheme which is eligible for the Pension
Protection Fund;
b) the scheme must not have commenced wind up before 6 April 2005;
c) an insolvency event must have occurred in relation to the
scheme's employer which is a qualifying insolvency event;
d) there must be no chance that the scheme can be rescued; and
e) there must be insufficient assets in the scheme 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.
Where a qualifying insolvency event occurs in relation to the employer of an eligible
scheme then an assessment period will automatically begin.
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