Under new legislation, restructuring professionals and insolvency practitioners must notify us and share documents relating to a moratorium or a restructuring plan if an eligible pension scheme is involved.
Each year we update our actuarial factors to make sure they’re actuarially equivalent, so the cost to us of providing each member's compensation is the same regardless of the choices they make.
In September 2018 the Court of Justice of the European Union (the CJEU) ruled that pension scheme members should receive at least 50% of the value of their accrued old age benefits if their employer became insolvent.
The Administrative Court’s judgment in June 2020 upheld our general approach to calculating increases in compensation as a result of the Hampshire ruling. But it also said we need to make sure members and survivors each receive at least 50% on a cumulative basis of the actual value of the benefits their scheme would have provided.
The Court of Appeal has supported our approach for increasing payments to PPF and FAS members following the 2018 European Court of Justice judgment in the Hampshire case.
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