Knowledge Base

The Pension Protection Fund (PPF)

The Pension Protection Fund (PPF)
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The Pension Protection Fund (PPF)

The Pension Protection Fund (PPF) was established by the government in 2005 to help protect members of Defined Benefit pension schemes.

If an employer becomes insolvent and the scheme has a ‘deficit’ -which means that there may not be sufficient money for the scheme to meet its commitments – the PPF can step in and pay compensation to members.

This generally means that 90% of your pension would still be payable, potentially more if benefits are already in payment.

Further information can be obtained from the Pension Protection Fund website https://www.ppf.co.uk/what-it-means-ppf.

Pension Transfer Consultation

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Free Pension Transfer Guide & Consultation
If you would like to find out if transferring your pension or taking a cash lump sum is suitable for you, we can provide a free initial Pension Transfer Consultation known as abridged advice.

Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • What your plans are for retirement.
  • Your needs for flexibility and control.
  • The likely cost of more in-depth advice.

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Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

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