Financial Assistance Scheme

The Pension Protection Fund (PPF) safeguards defined benefit pension schemes in the UK, ensuring that members receive the benefits they are entitled to even if their employer becomes insolvent. Established in 2005, we have grown to manage over 33 billion in assets for 295,000 members.

Who we protect

Our primary responsibility is to protect savers and beneficiaries of defined benefit pension schemes. We achieve this by:

• Assessing scheme health: We scrutinise the financial health of thousands of defined benefit schemes to identify those at risk of insolvency.
• Paying out benefits: When an employer becomes insolvent, we step in to make sure members receive their pension benefits without interruption.
• Supporting savers: We offer guidance and resources to help members understand their options and navigate through difficult times.

What we do

We operate in a variety of ways to mitigate the risk of underfunding in defined benefit schemes. Our key functions include:

• Reviewing scheme finances: We analyse financial reports, actuarial valuations, and employer financial information to assess scheme health.
• Setting funding requirements: Based on our assessments, we establish appropriate funding targets for underfunded schemes.
• Monitoring compliance: We monitor schemes to ensure they are taking necessary steps to meet their funding requirements.
• Providing guidance: We offer guidance and support to scheme sponsors, trustees, and employers to help them navigate the assessment process and implement necessary measures.

Our approach

We take a balanced and pragmatic approach to scheme assessments, taking into account various factors such as:

• The size and complexity of the scheme
• The financial health of the employer
• The nature of the scheme's investments
• The strength of the employer's covenant

Our ultimate goal is to protect savers while minimizing disruption to the workplace. We achieve this by working collaboratively with employers, trustees, and other stakeholders.