Date of screening: 09/03/2020
Screening Outcome - Full EQIA recommended: No
The Pensions Act 2004 set up the Pension Protection Fund, on a UK-wide basis, to provide compensation for members of eligible occupational pension schemes, where the sponsoring employer is insolvent and the scheme has insufficient assets to pay benefits at Fund compensation levels. The compensation is funded through annual pension protection levies imposed by the Fund and charged to all qualifying defined benefit occupational pension schemes. The levy ceiling is a control mechanism which ensures the amount raised through the pension protection levies by the Fund does not exceed a prescribed maximum. The standard amount of the compensation cap is one of a number of measures which help to control the Fund expenditure to enable it to remain sustainable and solvent.