To ask the Secretary of State for Work and Pensions what plans he has for the future funding of the Pension Protection Fund; and if he will make a statement. (261349)

The funding of the Pension Protection Fund is a matter for the Board of the Pension Protection Fund, an independent statutory corporation. The PPF is funded through a pension protection levy that is charged to all eligible defined-benefit occupational pension schemes, assets from schemes that transfer in to the PPF and investment returns. The Board made a commitment in August 2007 to collect £675 million a year for the next three years, indexed to earnings, so long as there was no significant change in risk. The Board intends to collect £700 million in 2009-10, keeping to that commitment. A consultation on the future development of the pension protection levy for 2011-12 and beyond concluded on 13 February 2009 and the Board is currently considering the responses received.

To ask the Secretary of State for Work and Pensions what assessment he has made of the compatibility with the European Convention on Human Rights of the Pension Protection Fund cap and its provisions relating to reductions for early retirement. (260980)

[holding answer 5 March 2009]: Our assessment is that the Pension Protection Fund (PPF) cap and its provisions relating to early retirement are consistent with ECHR. It ensures consistent treatment, based on age, relative to the qualifying insolvency event, (the trigger for entry to the PPF). It also ensures that people who take early retirement before the insolvency event are not placed in a more beneficial position than people who stay in employment.