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Pension Protection Fund

Volume 488: debated on Monday 23 February 2009

To ask the Secretary of State for Work and Pensions how many people have claimed pension payments from the Pension Protection Fund in (a) the UK, (b) the North East, (c) Tees Valley district and (d) Middlesbrough South and East Cleveland constituency in each of the last five years. (245864)

The Pension Protection Fund was set up to up to protect members of eligible defined benefit and hybrid pension schemes when the sponsoring employer experiences a qualifying insolvency event and the scheme cannot afford to pay members’ benefits at PPF levels of compensation. Individuals do not need to make a claim to be eligible for PPF compensation.

The PPF commenced operations in April 2005 and the first schemes transferred to the PPF in December 2006.

As at 30 November 2007 there were 1,167 members receiving compensation from the PPF, with 6,024 members due to receive compensation in future as it falls due. 10 members receiving compensation and 29 deferred members, resided in the North East of England.

As at 30 November 2008 there were 7,703 members receiving compensation from the PPF, with 12,942 members due to receive compensation in future as it falls due. 345 members receiving compensation and 518 deferred members, resided in the North East of England.

A breakdown of the aforementioned figures below regional level is not available.

While in the PPF assessment period, the process which determines whether a scheme transfers to the PPF, the trustees remain responsible for the running of the scheme with benefits being paid to members at PPF levels when they fall due. As at 30 November 2008 there were 121,300 scheme members, across the UK, in the assessment period.