Module 2 Defined And Safeguarded Schemes

Question 1

Defined benefit schemes (and hybrid schemes with DB) are covered by the PPF. But certain conditions must apply?

Answer 1

– Scheme must be eligible for the PPF
– must not have started to wind up before sixth of April 2005
– insolvency event must have occurred
– must not be able to be rescued
– funding level of the scheme is below the level of compensation of PPF