The Pension Protection Fund (PPF) is a statutory fund run by the Board of the Pension Protection Fund, a statutory corporate established under the provisions of the Pensions Act 2004, and is classified as a public financial corporation. It was established to pay compensation to members of eligible defined benefit pension schemes in the United Kingdom, when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation. We are also responsible for the day-to-day running of the Financial Assistance Scheme (FAS) on behalf of the UK Government.
Over 140,000 people (31 March 2019) are now receiving compensation, and hundreds of thousands more will do so in the future.
The money needed to pay compensation, and the cost of running the PPF is generated by:
- charging a levy on eligible pension schemes;
- taking of the assets of schemes that transfer to the PPF;
- recovering money, and other assets, from the insolvent employers of the schemes we take on; and
- investing all income and assets, as part of a prudent strategy.
We have £32.1 billion in our investment portfolio (31 March 2019) which is continually growing, and is currently managed both internally and externally
Highlights as at 31 March 2019
- As at 31st March 2019, the PPF had around 250,000 members, made up of 110,000 deferred members and over 140,000 members receiving compensation;
- By the end of our financial year, we were supporting 73 schemes in the assessment period, with assets of £6.5 billion and liabilities of £9.5 billion;
- By the end of March 2019, the PPF had a funding level of 118.6 per cent;
- By 31 March 2019, the probability of success of being financially self-sufficient by our target date was 89 per cent.
Further details regarding the PPF's strategic objectives and investment strategy for the year under review can be found in its annual report and strategic plan, which can be found here: