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Pensions: Financial Assistance Scheme

Volume 470: debated on Tuesday 15 January 2008

To ask the Secretary of State for Work and Pensions pursuant to the written ministerial statement of 17 December 2007, Official Report, columns 100-02WS, on Financial Assistance Scheme, whether the level of compensation in the amended Financial Assistance Scheme will be identical to that offered by the Pension Protection Fund. (175719)

[holding answer 7 January 2008]: The assistance provided by the financial assistance scheme will be broadly comparable in value to that provided by the Pension Protection Fund, though not identical. Because FAS pension schemes started winding up under the regulatory framework and individual pension scheme rules that predate the PPF, and as many FAS schemes will already have bought annuities for members as part of the winding up process, there will inevitably be differences in the structure of assistance provided. In practice, we believe that for the majority of beneficiaries these differences will not be substantial.