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...

Trustee duties and the Pension Protection Fund: Ilford, Box Clever and later cases on relevant factors, proper purpose and when PPF considerations are relevant

Published by a LexisNexis Pensions expert

Practice notes

When reaching decisions, trustees are expected, among other obligations, to:

act in the best interests of scheme beneficiaries
act for a proper purpose
possess sufficient knowledge and understanding of pensions law
consider all relevant factors and ignore those that are irrelevant

In putting this principle into effect, trustees need to determine:

what amounts to a relevant factor, and
the extent to which the trustees can (or ought to) take that factor into account

For further information on trustee duties, see Practice Note: Duties of pension trustees.

These matters were considered by the High Court in Independent Trustee Services Ltd v Hope (the Ilford case), which explored the relevance of the Pension Protection Fund (PPF) in trustees’ decision-making.

The Ilford case—the facts

Independent Trustee Services Ltd was the sole corporate trustee of the Ilford pension scheme, a defined benefit occupational scheme sponsored by Ilford Ltd (Ilford). Ilford then went into Administrative Receivership, an occurrence which, at that time, did not constitute a qualifying Insolvency event for the purpose of possible entry into the PPF...

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Wyn Derbyshire

gunnercooke LLP

Wyn is a partner at gunnercooke LLP and specialises in pensions, trust and employment law in all industry sectors, dealing with the transactional, advisory and documentation aspects.He also has wide experience of the pensions implications of heavyweight corporate transactions and flotations, the issues arising from the establishment and merger of pension schemes, and sex equalisation and other discrimination issues in respect of benefits provided by pension schemes. In addition, he provides advice to pension scheme trustees generally.Recent transactions include advising Amcor on pension matters relating to the acquisition of Alcan business and the acquisition of Northern Foods PLC by Boparan Holdings.He is a co-author (with Stephen Hardy and Stephen Maffey) of TUPE: Law and Practice, published by Spiramus Press (now in its 4th edition), and co-author (with Stephen Hardy and David Wicks) of Money & Work, published by Spiramus Press in August 2007. He has also...

Web page updated on 22/05/2026

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