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Pensions: Compensation

Volume 463: debated on Monday 1 October 2007

To ask the Secretary of State for Work and Pensions what estimate he has made of the average cost of compensation to pensioners whose pension schemes were underfunded and who are eligible for either Financial Assistance Scheme or Pension Protection Fund compensation. (152649)

[holding answer 26 July 2007]: We estimate that the average assistance from the Financial Assistance Scheme (FAS) for those individuals whose pension scheme was underfunded and who are eligible for payments will be around £64,000 for the scheme as extended under the budget announcement.

Information in respect of the Pension Protection Fund (PPF) is not available in the requested format. However as at 25 July 2007 10 schemes have transferred into the PPF and average annual payments to members are: (i) to pensioner members £4,509; (ii) to deferred members £4,999; and (iii) for members receiving a mixture of pension and deferred payment £3,673.