The Pension Protection Fund (PPF) has taken its 100th pension scheme under its wing.

Members of Bristol-based Brooks Service Group Plc scheme will now have their benefits paid by the PPF, adding a further 343 members onto the lifeboat's books.

"Today's announcement that 100 schemes have now transferred into the PPF demonstrates clearly that we are doing what we were set up to do: protecting people's pensions when their employers go bust," said Partha Dasgupta, PPF chief executive.

PPF hits landmark transfer"This is a major achievement for an organisation set up just four years ago - and will help reassure people belonging to work-based pension schemes that their pensions are protected should their employer go bust. This is especially important during a time of recession," he added.

Independent Financial Adviser, Intelligent Pensions, congratulated the PPF for doing its job, but noted that Brooks Service Group Plc actually went bust in 2007, meaning it has taken two years for member benefits to be paid out.

Mark Frost, partner at independent actuary and consulting firm Barnett Waddingham, disagreed however: "I am not convinced that the increasing number of schemes falling into the PPF is something to celebrate.

"The Pension Regulator's job is to keep schemes out of the PPF. The remaining and reducing number of employers have to foot the bill through the levy tax on business. At some point the system will become unaffordable."

Meanwhile, the PPF has also announced that its compensation cap for 2009/10 will be £31,936.32 for people aged 65.

This is applicable to members of DB pension schemes whose employers have gone bust, and is a 3.5 per cent increase on the 2008/09. Those who have taken early retirement will also so this percentage increase on their compensation.

However, those who have not yet retired will receive 90 per cent of what they are entitled to, with a cap at £28,742.68.

- Pensions Age April 2009

Share Story: