Written evidence from Pensions and Lifetime Savings Association (DBP0083)

The point I intended to make [Q12] was that the PPF does not have direct experience in paying scheme benefits – its experience, and systems are set up to pay PPF compensation, which is, by design, a much simpler version of the typical benefit structure of a DB scheme – which may have dozens of variations due to rule changes over decades, scheme mergers and in some cases will contain specialised member protections. When a scheme enters PPF assessment, the scheme administrators will continue to pay scheme benefits until they are adapted to PPF levels, this will continue until the scheme transfers to the protection fund. Were the PPF’s remit change and it was required to pay scheme specific benefits it would need to adapt to new demands, requiring primary legislative changes, as well as operational changes to its systems, member communications and staff training and skills.

July 2023