In line with the equalisation of pensions, the Pensions Act 2004 requires our compensation to be paid on a basis that is no more or less favourable to a woman or man, in respect of pensionable service on or after 17 May 1990. In order to do this, our calculation of compensation has to take into account any differences in scheme benefits that are due to differences in the calculation of GMPs for men and women.
Here you'll find all the necessary valuation guidance and factors that were valid for previous periods. Please use the links below: Valuation guidance valid for previous periods
Paragraphs 26 and 27 of Schedule 7 of the Pensions Act 2004 set out the circumstances in which the compensation cap applies and how and when it should be increased. In July 2021 the Court of Appeal ruled the PPF compensation cap was unlawful on the grounds of age discrimination, so we’re no longer applying it and we’re removing it from affected PPF pensioners. The information below is provided for advisers who still need to refer to previous calculation tables and factors.
We work with scheme trustees and their advisors when a sponsoring employer is in financial distress or facing a major change or ‘event’ – such as a restructuring arrangement or potential insolvency – which might trigger the entry of an eligible scheme into PPF assessment.
Running a pension scheme can be complex and challenging. This is particularly true where the employer is in difficulty. It's important that as a trustee, you understand the sorts of challenges you’ll face when there’s an increased risk of your employer going bust. So we've published a new guide, Contingency planning for employer insolvency, to help you.
The assessment period starts with a qualifying insolvency event. You must file notice of the insolvency – an S120 notice – within 14 days of your appointment or of becoming aware of the existence of the pension scheme. Without that, it’s not possible to make a start on the work that needs to be completed during the assessment period. By law, we exercise the trustees’ rights against the employer during the assessment period. So we need to know about the insolvency as soon as possible.
Find out what happens if the employer sponsoring your pension scheme becomes insolvent.
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