By Martin Bamford @ 15/10/05 - 11:23
A number of newspapers reported yesterday that some changes to the Pension Protection Fund have been accepted which represent good news for businesses. The PPF will now reward those companies that have been making extra contributions into their pension schemes in order to reduce deficits. They will also take into account guarantees made by parent companies over the pension funds of their subsidiaries.
The Pension Protection Fund started on 6th April 2005 after being established in the Pensions Act 2004. It exists to pay compensation to members of eligible defined benefit pension schemes if a qualifying insolvency event takes place and there are insufficient assets available to meet the funding requirements of the pension scheme. You can find more information about the Pension Protection Fund at http://www.pensionprotectionfund.org.uk/.