Pensions: Insolvency

Mr. Philip Hammond
To ask the Secretary of State for Work and Pensions what his latest estimate is of the number of pension schemes in wind-up with a solvent employer which signed compromise agreements after 2005 which do not qualify for assistance from the Pensions Protection Fund or the financial assistance scheme as proposed to be amended by the Pensions Bill; and what his estimate is of the number of members in these schemes.

James Purnell
Information on the number of compromise agreements entered into by trustees and employers after 2005 is unavailable. However, since 2005, employers that are considering entering into a compromise agreement with their pension scheme may obtain assurance in the form of a clearance statement from the Pensions Regulator that a contribution notice or financial support direction will not be issued later in respect of that agreement. In general terms the Regulator will not issue clearance statements where compromise agreements render schemes ineligible for the Pension Protection Fund (PPF).