PPF changes leave members at risk
It emerged last year that members of Olympic Airlines' UK pension scheme did not qualify for Pension Protection Fund (PPF) compensation, because the company had ceased to have any operating establishment in the UK. Regulations which are due to come into force later this month are intended to correct the position – but are unlikely to assist members of any other scheme.
In case you’re looking for reaction to this, Linklaters pensions partner Tim Cox is available for interview. He said:
“The new wording is too narrow to be likely to help in any case other than this one, even though the issue clearly goes well beyond Olympic Airlines. Under normal circumstances one might think it reasonable to address this case first, and then correct the wider issue later on. However, the DWP have been aware of this issue for a long time now and the risks for these schemes are entirely a result of DWP’s own flawed regulations. A permanent “fix” would be simple to achieve and is long over-due.”