The Government is consulting on extending compensation for PPF beneficiaries with 21 or more years' pensionable service in schemes of insolvent employers.
Richard Harrington, the Parliamentary Under-Secretary of State for Pensions, has announced a consultation on draft regulations in relation to the proposed increase, which was first included in the Pensions Act 2014.
The proposed extension will take the form of a 3% increase for each year of pensionable service beyond 20 years, up to a maximum amount of compensation of double the value of the standard cap (currently, £33,678.38 at age 65).
If the proposed extension of compensation goes ahead, it is expected that a similar increase will be included for schemes that are subject to the Financial Assistance Scheme (which applies to employer insolvencies that predate PPF coverage).
It is not proposed that either increase will be backdated.
The consultation, available here, runs until Wednesday, 9 November.
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