PPF is the abbreviation used for the Pension Protection Fund. It is a fund used for protecting members like you of a final salary, also known as a defined benefit, company pension scheme. PPF works by paying normal compensation that is based on the amount of your pension, in case the company got bankrupt and your scheme doesn’t have enough funds to cover your pension.
You will receive regular compensation if your company’s scheme and PPF conditions are in harmony. Compensation equal 100 per cent of your pension will be given to you upon reaching your scheme’s retirement age. And if you haven’t reached your schemes retirement age, depending on PPF rules, you may be entitled to regular compensation of 90 per cent of your pension.
How to qualify for financial help from Financial Assistance Scheme or FAS?
If you have lost out on your pension because your scheme ended after January 1, 1997, you may be entitled to FAS if your:
- Final salary or defined benefit scheme, in some instances, was overwrought because even though your employer still doing business it could not pay your benefits
- Final salary occupational pension scheme was under funded.