§ Lynne JonesTo ask the Secretary of State for Work and Pensions what contribution the Government will make to the Pension Protection Fund in lieu of any contribution under the current guaranteed minimum pension arrangements. [175901]
83W
§ Malcolm WicksWhen an eligible scheme enters the PPF, and it is a contracted-out occupational pension scheme, the PPF will not take on specific responsibility for paying the guaranteed minimum pension. This is to simplify the PPF rules in relation to entitlement to compensation.
However, the level of compensation payable will be significant, and reflect the individual scheme rules. PPF will pay 100 per cent. level of compensation to members who are over their pension scheme's normal pension age (NPA) and 90 per cent. level to members below their pension scheme's NPA, subject to a benefit cap.
The basic benefits for members below NPA will reflect the following:
- NPA;
- accrual rate;
- pensionable salary; and
- pensionable service