No time limit on PPF/FAS arrears, PPF confirms

The Pension Protection Fund (PPF) has confirmed that it will not put a time limit on payments for the Hampshire uplift or uncapping arrears, with arrears to be paid from the time at which the affected members started to receive compensation.

The compensation cap was ruled unlawful by the Court of Appeal in 2021, although there had been uncertainty as to whether a six-year time limit would apply to arrears payments.

However, in an update on its work to implement the Hampshire and Hughes court rulings, the PPF confirmed that it would not put a time limit on payments of Hampshire or uncapping arrears, stating that it will "pay arrears from the time that affected members started to receive compensation".

The PPF also noted that whilst the Financial Assistance Scheme (FAS) cap was not affected by the court of appeal ruling, some members are entitled to Hampshire arrears.

In light of this, the lifeboat, which is the scheme manager for the FAS on behalf of Department for Work and Pensions (DWP), confirmed that it will not put a time limit on the payment of Hampshire arrears to FAS members.

The DWP also recently stated that it would not pay interest on FAS arrears as there is "no legal basis to do so", although the Work and Pensions Committee has since written to DWP to further query these differing approaches.

The PPF is still undertaking work to complete the payments, describing this as a “long and complicated piece of work” that is expected to take until the end of 2022 to complete.

    Share Story:

Recent Stories


Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth.

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video inteviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today

Multi asset credit
Pensions Age editor, Laura Blows, discusses multi asset credit with Royal London Asset Management senior fund manager, Khuram Sharih
Pensions Age podcast: buy-outs and buy-ins for member and employer nominated trustees
Pitfalls and good practice when approaching insurers with Pensions Age editor, Laura Blows, Martin Parker (Just Group) and Akash Rooprai (ITS)