The next stage will be the “validation process”, where the PPF has to check whether the pension scheme is eligible and if it is a qualifying insolvency event. When this has been verified, it will trigger the start of an assessment period.
Once information has been received from trustees, it will look to establish whether the scheme can be rescued or if the scheme can afford to secure benefits which are at least equal to the compensation the PPF would pay if it assumed responsibility for the scheme.
PPF media relations manager Ana Moreno says compensation would mean that for those who had reached the scheme’s normal pension age, it would pay them 100 per cent compensation for what they should have received at the time their employer went bust.
She says: “We will also generally pay 100 per cent compensation to those who have retired on legitimate ill-health grounds and those receiving a pension in relation to someone who has died.”