The cost of living this year
We recognise that the increase in the cost of living this year is a cause for concern for our members.
Legislation defines the extent of any annual increases to compensation when it’s being paid, also known as indexation. There is no provision in legislation for indexation of PPF compensation for benefits accrued before 6 April 1997 (‘pre-97 benefits’), and the Board of the PPF does not have the power to change indexation levels for pre-97 benefits for PPF or FAS members.
Legislation does, however, give our Board some discretion to change the rate of indexation of PPF compensation that relates to benefits accrued on and after 6 April 1997 (‘post-97 compensation’).
The Pensions Act 2004 sets the rate of indexation of post-97 compensation as the lower of 2.5 per cent or the annual increase in prices as specified by the Secretary of State. Our Board does not have the power to alter the rate of indexation of post-97 benefits payable to FAS members.