Hansard

Pensions: Occupational Schemes

Volume 688: debated on Tuesday 16 January 2007

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Lord Varley

asked Her Majesty's Government:

Whether members of an occupational scheme that is in wind up may receive assistance from both the financial assistance scheme and the Pension Protection Fund. [HL961]

The Parliamentary Under-Secretary of State, Department for Work and Pensions
(Lord McKenzie of Luton)

It is not possible for a single pension scheme to be eligible for assistance from both the financial assistance scheme (FAS) and the Pension Protection Fund (PPF).

The financial assistance scheme provides assistance to members of qualifying pension schemes that commenced winding up between 1 January 1997 and 5 April 2005.

To be eligible for the Pension Protection Fund, a scheme must not have commenced wind up before 6 April 2005. The PPF was established to pay compensation to members of eligible defined benefit pension schemes where there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover the PPF levels of compensation.