Guidance issued May 2011
The PPF has issued guidance for trustees of closed schemes (schemes that are more than 100% funded on the PPF basis and are so ineligible for PPF entry but which cannot arrange a bulk buyout on winding up. The guidance points out that:
- a scheme authorised to be run as a closed scheme must be wound up, with the winding up beginning immediately before the PPF assessment period;
- members whose benefits are reduced during the assessment period may have their benefits topped up at the end of the period, up to the level of benefits payable under the statutory priority order;
- the PPF may give directions to the trustees to ensure that the scheme's PPF liabilities do not exceed its assets or that the excess is kept to a minimum;
- trustees may apply for a further assessment period if the scheme assets fall below the value of its PPF liabilities.