Date of Screening: 18/03/2022
Screening Outcome - Full EQIA recommended: No
The Statutory Rule gives effect to a new maximum Fraud Compensation Levy (FCL) ceiling applicable to eligible occupational pension schemes. The Rule is purely technical in that it increases the value of the existing FCL ceiling so that there is sufficient money available to pay compensation to affected members of pension schemes.
The Pension Protection Fund (PPF) is an independent statutory body established in 2005 by the Pensions Act 2004. The PPF operates across the UK and its responsibilities include the operation of the Fraud Compensation Fund (FCF) which provides compensation to eligible occupational pension schemes where there has been a scheme asset reduction, which is attributable to an offence involving dishonesty, and where the employer has become insolvent or is unlikely to continue trading. The costs of the compensation paid from the FCF is recovered from eligible occupational pension schemes by the FCL.