Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Pension Protection Fund definition

What does Pension Protection Fund mean? In UK pensions practice, the Pension Protection Fund (ppf) provides statutory compensation to members of eligible defined benefit and certain hybrid occupational pension schemes when the sponsoring employer suffers an insolvency event and the scheme cannot secure benefits above PPF levels. Established by the Pensions Act 2004 (with parallel legislation in Northern Ireland), the PPF pays “PPF compensation”—typically 100% for members over scheme normal pension age or on survivors’/ill‑health pensions at the assessment date, and otherwise 90% subject to a compensation cap and statutory revaluation/indexation—often lower than scheme benefits. Schemes enter a PPF assessment period following employer insolvency. If, on...

Pension Protection Fund (PPF) in divorce and financial remedies (England and Wales): eligibility, assessment, compensation, sharing/attachment orders, procedure, charges, and the Financial Assistance Scheme

Published by a LexisNexis Family expert

Practice notes

Practice Note

This Practice Note explains the tests the Pension Protection Fund applies when compensating Members of an occupational pension scheme, together with the process and effects of assessment for admission to the scheme in the context of family proceedings. It also outlines the ramifications for divorce or dissolution, the applicable steps within financial remedy proceedings, and the reach of the distinct Financial Assistance Scheme.

The Pension Protection Fund (PPF) was created by the Pensions Act 2004 (PeA 2004) as a statutory corporate body. It administers funds to provide compensation to members of specified occupational pension schemes where:

the pension scheme qualifies as an eligible scheme
a ‘qualifying insolvency event’ has occurred in relation to the employer, or the employer is unlikely to remain a going concern and satisfies the conditions in the Pension Protection Fund (Entry Rules) Regulations 2005, SI 2005/590, reg 7
the scheme’s assets are insufficient to meet the defined benefits due, and
the pension fund failure took place on or after 6 April 2005

For additional information about the PPF, see Practice Note: The Pension Protection Fund—an introduction...

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Rebecca Dziobon

Penningtons Manches Cooper

Rebecca is an experienced family lawyer having trained and worked on complex financial and children matters at both City and regional firms for ten years. In 2011 she was nominated for, and appointed as, a member of the Resolution Pensions, Tax and Property Committee. She has authored the LexisPSL Family sections on pensions, insurance and trusts since 2013. In 2015 Rebecca moved into a knowledge lawyer role and is now senior knowledge lawyer at Penningtons Manches LLP. She is responsible for equipping the family team with the best tools to provide excellent client service. She also works collaboratively across the wider firm to devise and deliver business improvement initiatives ...

Web page updated on 21/05/2026

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