From 1 April 2009, the annual compensation payable by the Pension Protection Fund (PPF) to defined benefit pension scheme members whose employers have become insolvent will be capped at £31,936.32 for people aged 65. This figure has been ratified in an order laid before Parliament and represents a 3.5 per cent increase from 2008/09.

The compensation cap for those scheme members who have taken early retirement also increases by the same percentage.

View the news details and the compensation factor guidance page.