Pension Protection Fund (PPF)

The Pension Protection Fund (PPF) is a UK's backup safety net for defined benefit pension schemes if a company becomes insolvent and cannot pay pensions. It steps in to ensure pensioners receive their benefits, typically around 90% of their promised income, if the employer fails. Funded by levies on pension schemes and investments, the PPF protects pensioners from the risk of their employer's failure, offering financial security while encouraging responsible pension scheme management. It acts as a safety net, helping maintain confidence in pension arrangements.