PENSION PROTECTION FUND

Hampshire V PPF Ruling

The Court of Justice of the European Union (CJEU) issued its judgement on the Hampshire v PPF case on 6 September 2018.

Mr Hampshire is a member of the Pension Protection Fund (PPF) following his employer’s insolvency. His expected pension benefits as a long-standing pension scheme member were significantly reduced by the PPF compensation cap, to an extent which he argued is incompatible with EU law. His case reached the Appeal Court, which referred to the CJEU.

The CJEU has now ruled that members should receive at least 50% of the value of their accrued pension if their employer becomes insolvent. The PPF expects this to affect a very small number of people in the PPF and the earlier Financial Assistance Scheme. Further action may require legislative change and/or the conclusion of UK court proceedings. See the PPF press release

For further information on the PPF, see our Techtalk article: Spotlight on the Pension Protection Fund for DB schemes (PDF)

11 September 2018

PPF members should receive at least 50% of their accrued pension