Removal of PPF compensation cap ‘will take some time to complete’

The removal of the Pension Protection Fund (PPF) compensation cap will take until the end of 2022 for the majority of currently capped pensioners, the PPF has stated.

In an update on its work to implement the court ruling that the compensation cap was unlawful and the ECJ’s Hampshire ruling, PPF director of scheme services, Sue Rivas, explained that it would take some time to complete the removal, but assured those affected the lifeboat was working as quickly as possible.

The PPF noted that it no longer applies the compensation cap to new PPF retirees, and that it has started the process to remove the PPF compensation cap and expected to scale up payments in the New Year.

The update also revealed that the PPF has now paid arrears to Financial Assistance Scheme (FAS) members who had already received a Hampshire increase.

These arrears were paid ahead of the PPF’s target of the end of 2021.

Commenting within the update, Rivas said: “I’m really pleased that we’re now processing members and have started to remove the PPF cap. But it’s going to be a long and complicated piece of work to complete.

“Uncapping is a complex process, particularly for those members who’ve already received a Hampshire increase, and we expect that it’ll take until the end of 2022 before we’re able to disapply it for the majority of currently capped PPF pensioners.

“I understand that it’s a frustrating time for those affected PPF capped pensioners, especially if you haven’t heard from us yet. I assure you that we’re working through our processes as quickly as possible, so you don’t need to contact us. We’ll be in touch with you as soon we can.”

The PPF also stated that it still needed to finalise whether it will put a six-year time limit on arrears payments, and it was continuing discussions with the DWP on the subject, with an announcement to be made “as soon as possible”.

    Share Story:

Recent Stories

ESG and pensions engagement
Pensions Age editor Laura Blows discusses whether ESG really is the silver bullet to pensions engagement, and whether events such as COP:26 has amplified saver interest, with Stuart Murphy Co-Head of DC at LGIM, and Jo Phillips, Director of Research and Innovation at Nest Insight
Developments in the BPA market
Pensions Age editor Laura Blows explores the bulk purchase annuity market with Standard Life, Head of Bulk Purchase Annuities, Justin Grainger.