Pension Protection Fund (Pension Compensation Cap) Order 2009 comes into force

Implementation date: 1 April 2009

The Order specifies the cap on the amount of compensation provided for under s.107 of the Pensions Act 2004 for members of certain occupational pension schemes that are underfunded at a certain level and whose sponsoring employer has become insolvent. The compensation cap is used by the Board of the Pension Protection Fund to determine the amount of compensation payable to a person who is under normal pension age on the assessment date and whose compensation is not derived from a survivor’s pension or a pension payable on the grounds of ill health. The Order can be viewed on the OPSI website.