§ Mr. Frank FieldTo ask the Secretary of State for Work and Pensions what percentage of compensation he expects the Pension Protection Fund to provide to pensioners losing all or part of their occupational pensions when the scheme comes into existence. [188326]
§ Malcolm WicksWhen the Pension Protection Fund is introduced in April 2005, the level of compensation provided to members of eligible defined benefit schemes and defined benefit elements of eligible hybrid schemes will be as follows:
100 per cent. level of compensation subject to PPF Rules to those above the scheme's Normal Pension Age (NPA) immediately before the assessment date (the first day of the assessment period), and to those below NPA who are either in receipt of survivors' benefit or already in receipt of their pension on the grounds of ill health immediately before the assessment date.
90 per cent. level of compensation subject to PPF Rules to those below NPA immediately before the assessment date, subject to an overall compensation cap.
This is subject to Royal Assent being granted to the Pensions Bill.
Further details of the PPF compensation provisions can be found in Schedule 7 of the draft Bill.