The Pension Protection Fund

The Pension Protection Fund (PPF) is a statutory body established in the UK to protect members of defined benefit pension schemes when their employers become insolvent. Founded in 2005, the PPF plays a crucial role in ensuring that pension scheme members receive at least a portion of their promised benefits, even in the event of employer bankruptcy.

With a mission to safeguard the retirement incomes of millions, the PPF operates by taking over the assets and liabilities of failed pension schemes. It aims to provide financial security to members while also promoting the sustainability of pension schemes across the UK.

The PPF is funded through a combination of levies on eligible pension schemes and investment returns. As of now, it protects over 250,000 members and has paid out billions in benefits since its inception.

In addition to its core functions, the PPF actively engages in risk management and investment strategies to ensure its long-term viability. It works closely with pension scheme trustees and other stakeholders to enhance the overall health of the pension landscape in the UK.

The PPF is committed to transparency and accountability, regularly publishing reports on its financial performance and operational activities. Through its initiatives, the PPF aims to raise awareness about the importance of pension protection and encourage best practices within the industry.

Overall, the Pension Protection Fund stands as a vital institution in the UK, dedicated to securing the future of pension scheme members and fostering confidence in the pension system.