PPF meaning in Business ?
Answer: What is Pension Protection Fund mean?
The Pension Protection Fund (PPF) is a statutory fund in the United Kingdom, intended to protect members if their defined benefits pension fund becomes insolvent. It was created under the Pensions Act 2004. The Board of the PPF is a statutory corporation responsible for managing the Fund and for making payments to members.
The PPF started on 6 April 2005 in response to public concern that when employers sponsoring defined benefit pension schemes became insolvent, scheme members could lose some or all of their pension if the scheme was underfunded.
Besides offering compensation to those pension scheme members affected by insolvencies the Government hoped that the existence of the PPF would improve confidence in pension schemes generally.
As the only defined benefit pension scheme permitted to increase pensions each year below the statutory minimum, the PPF generally pays lower benefits over a person's lifetime than the member would have received had their scheme remained solvent. However, without the PPF, these same members might have received little or no pension from their insolvent pension scheme.
The Board of the PPF has also taken over responsibility for managing the Fraud Compensation Fund, which will provide compensation to members of pension schemes who lose their entitlements due to Fraud. The PPF is chaired by Arnold Wagner OBE and the previous chair between April 2010 – June 2016 was Barbara, Lady Judge,. The chief executive since March 2018 is Oliver Morley.
reference
Comments(0)
Ever curious about what that abbreviation stands for? fullforms has got them all listed out for you to explore. Simply,Choose a subject/topic and get started on a self-paced learning journey in a world of fullforms.