The Pension Protection Fund (PPF) is a statutory fund, set up by the Government to provide compensation to members of eligible schemes where, after 6 April 2005, the employer in relation to the scheme becomes insolvent and the scheme has insufficient assets to provide members with certain minimum levels of benefits.
The process for entry into the PPF is lengthy and complex, requiring pension scheme trustees to complete a number of challenging tasks, and to meet specific deadlines, to ensure that pension scheme benefits are being paid to the right members at the right time and at the right levels. Many trustees, though familiar and experienced in dealing with the issues faced by ongoing schemes, find the PPF assessment period process demanding and sometimes counter-intuitive.
Entrust Pension Limited is often appointed as a professional trustee to such pension schemes, either immediately before or shortly after the sponsoring employer insolvency event, to guide the pension scheme through the PPF process. We have significant experience in dealing with PPF procedures and tasks, as well as strong relationships with PPF personnel. This allows us to work either alongside existing trustees or as a sole trustee on such schemes, ensuring that compliance with PPF timescales is achieved, that members’ best interests are protected and that all stakeholders in the pension scheme are kept fully up to date with progress.
It is often the case that pension scheme administration for PPF eligible schemes is carried out in-house by the sponsoring employer, or by a service provider inadequately equipped to deal with the demands placed on it by the PPF processes. In these cases, Entrust Pension Limited’s excellent relationships with numerous pensions professionals and consultants allow us to recommend appropriate service providers who we know and trust to be able to carry out the work required efficiently and cost-effectively, providing all stakeholders with comfort that the pension scheme and its members are in the best possible hands.
If you are involved in the management of a scheme faced with possible entry into a PPF assessment period, please contact us via the website or call one of our experts, who will be happy to discuss this with you further.