Pension Protection Fund


The PPF was established by the Pensions Act 2004 with effect from April 2005.

The Pension Protection Fund provides compensation to members of eligible DB schemes where there are insufficient assets in the pension scheme to pay a specified level of benefits on the insolvency of its sponsor. The PPF is funded by the payment of levies each year by all pension schemes potentially eligible for entry into the PPF. Many schemes have put in place strategies for managing their PPF levies including contingent assets which help to reduce risk – and therefore, also reduce the risk-based levy.

How we can help

  • Drafting, and advice on, PPF contingent assets to help schemes reduce risk and PPF levy payments
  • Advice on PPF levy invoices, including challenging invoices
  • Advice for schemes going into PPF assessment periods, including documentation, data and assessment of benefit entitlements
  • Advice to companies on restructuring and other corporate activity which may involve clearance applications and advice on the potential impact of the PPF

Recent experience

  • We recently advised, and provided project management to, the Dawson group of companies entering the PPF assessment period. The Dawson pension scheme has now entered the PPF
  • We advised the trustees of the HMV pension scheme which has entered a PPF assessment period
  • We acted for the TfL Pension Fund and TfL against the PPF to challenge certain PPF levy invoices. A settlement agreement was reached before trial, saving our client millions of pounds.