Does the Pension Protection Fund protect your money?
Is your pension protected?
The recent recession has seen the collapse of many businesses with more predicted. Up until now, company insolvency has meant that employees of the firm would walk away with pretty much nothing, including most if not all of the money invested in the employer defined benefit pension scheme.
This has prompted the UK government to introduce the Pension Protection Fund (PPF) in the 2004 Pensions Act, which protects the members of eligible employer defined benefit pensions should the company become insolvent. Although this is a government-sponsored institution, it's the employers who actually fund it by way of an industry levy.