Gordon Lishman‚ Director-General of Age Concern England‚ said:

“The Pension Protection Fund (PPF)‚ which goes live today‚ will protect the pensions* of millions of people. Age Concern and other organisations have campaigned hard to ensure compensation is available to workers who lose their pensions through no fault of their own.

“The PPF is an important step in the process of restoring the trust that has been lost in pensions following the collapse of a number of occupational schemes.

“The Government now needs to focus on other ways to restore trust.  The Financial Assistance Scheme needs to be properly funded so that those who lost pension entitlements before the introduction of the PPF are not forgotten.

“At the same time the Basic State Pension needs to be paid at a minimum of £109 per week to provide a solid foundation upon which people can build their retirement incomes. This will help convince people that it is worth saving for their retirement.”

Note to editors

* Final salary and other defined benefit pensions.
 
(From DWP website) “The Pension Protection Fund has been established to pay compensation to members of eligible defined benefit pension schemes‚ when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation.”

(From DWP website) ”The Pensions Act 2004 contains the Financial Assistance Scheme (FAS)‚ which will offer help to some people who have lost out on their occupational pension because their scheme was under-funded when it wound up and their employer has been unable to make up the deficit. An amendment to the Pensions Bill clarified that members of such pension schemes that started winding up with an insolvent employer‚ prior to the establishment of the Pension Protection Fund‚ may be eligible for FAS assistance.” 

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