The PPF was very active last month, stepping in to rescue an unusually high number of insolvent retirement savings schemes.
A total of 15 insolvent workplace retirement saving schemes had to be bailed out last month, the Pension Protection Fund (PPF) has announced.
Companies including Leyland Daf Vans were facing the insolvency of their pension funds prior to the PPF stepping in, the BBC reports. The body has now rescued a total of 57 schemes since its establishment in 2005, effectively bailing out 15,935 workers.
A total of £2.3 million in savings compensation is also to be paid out this month, the PPF said, with the oldest individual recipient being aged 101. Average yearly compensation for putting savings in to an insolvent scheme runs to £4,700 per person annually.
When the PPF takes over an insolvent scheme, it makes retirement payouts to workers rather than the company they work for - exactly matching the payments the scheme would have made them had it not collapsed for over-65s. However, if the worker is below retirement age, just 90 percent of pension payments are met by the fund.
It generally takes around a year for the collapsed scheme to be fully absorbed in to the PPF, which is itself funded by tax levies from private sector firms who run their own final salary occupational schemes.
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