Draft regulations to allow the Pension Protection Fund to take account of bridging pension payment levels

Closed 1 Oct 2017

Opened 31 Aug 2017

Overview

This consultation concerns proposed changes to regulations so that Pension Protection Fund (PPF) compensation can be amended to reflect the different rates of payment for those with a bridging pension.

The proposed changes will only apply to individuals whose pension scheme enters a PPF assessment period from the date that the proposed regulations come into force.  Individuals who are already in receipt of PPF compensation, or whose scheme is in a PPF assessment, will not be affected.

Other ways to respond:

You can also send your consultation response by writing to:

PPF and NEST Partnership

Private Pensions Policy and Analysis

First Floor, Caxton House

Tothill Street

London, SW1H 9NA

You can also email your consultation response to:

bridging.pensionsconsultation@dwp.gsi.gov.uk

Why We Are Consulting

We want to gather views on the benefits and any possible unintended consequences of proposals to allow the PPF to take account of bridging pensions by smoothing the amount of PPF compensation over a member’s lifetime, and the alternative option of moving members to  a lower  rate of compensation (“step down”) after they reach state pension age or the age specified in their pension scheme rules. The consultation also seeks views on whether the draft Pension Protection Fund (Compensation) (Amendment) Regulations 2017 as drafted achieve their intended purpose. 

What Happens Next

We will aim to publish the government response to the consultation on the GOV.UK website. The consultation principles encourage Departments to publish a response within 12 weeks or provide an explanation why this isn’t possible. Where consultation is linked to a statutory instrument responses should be published before or at the same time as the instrument is laid.

The report will summarise the responses and any action we will take, or have taken, in respect of them.

Audiences

  • Scheme members
  • Trustees
  • Pension professionals

Interests

  • Pensions