The Pension Protection Fund (PPF) was established in April 2005 as a lifeboat for defined benefit pensions when the sponsoring employer becomes insolvent.
The Pension Protection Fund is a statutory body, independent of government, and is funded primarily by a levy paid by all schemes eligible for PPF protection.
Its role is to provide a safety net for members of eligible defined benefit pension schemes when the scheme’s sponsoring employer becomes insolvent.
It does this by assuming responsibility for schemes assessed to be underfunded after an insolvency event and pays compensation.