The Pension Protection Fund was established to pay compensation to members of eligible defined-benefit (DB) 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. It is expected the number of schemes having to enter the PPF will increase over the coming years.
The new information platforms have been designed to help companies prepare for this by improving the working knowledge of trustees and pension scheme administrators.
The programme includes a re-launched PPF website where visitors can learn more about how to reduce the PPF levy, as well as a full range of reference information on the PPF available??, a more robust consultation process and a programme of education seminars.
Paul Jayson, partner and head of corporate consulting at Barnett Waddingham, said: "The PPF levy remains a hot topic for companies already suffering financial pressures. It is crucial for pension schemes to display a full working knowledge of the PPF as, in the coming years, more and more schemes are forecasted to enter its protection. Furthermore, as it is possible to reduce the levy you have to pay, we want to provide the opportunity to learn more in a way that suits people best, be it sitting in a presentation or going online.
"A detailed understanding of the PPF could be a critical factor for the health of the pensions arena moving forward - it should be seen as a need-to-know rather than a nice-to-know. We are confident that having attended a seminar or taken part in another of the knowledge platforms, pension schemes and trustees will be well on the road to having a good understanding of issues that could potentially affect them."
