Pensions: Occupational Schemes

House of Lords written question – answered on 16th January 2007.

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Photo of Lord Varley Lord Varley Labour

asked Her Majesty's Government:

Whether members of an occupational scheme that is in wind up may receive assistance from both the financial assistance scheme and the Pension Protection Fund.

Photo of Lord McKenzie of Luton Lord McKenzie of Luton Parliamentary Under-Secretary, Department for Work and Pensions, Parliamentary Under-Secretary (Department for Work and Pensions)

It is not possible for a single pension scheme to be eligible for assistance from both the financial assistance scheme (FAS) and the Pension Protection Fund (PPF).

The financial assistance scheme provides assistance to members of qualifying pension schemes that commenced winding up between 1 January 1997 and 5 April 2005.

To be eligible for the Pension Protection Fund, a scheme must not have commenced wind up before 6 April 2005. The PPF was established to pay compensation to members of eligible defined benefit pension schemes where there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover the PPF levels of compensation.

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