Who we are
The Fraud Compensation Fund (FCF) was set up by the Pensions Act 2004. We’re a statutory public corporation accountable to Parliament through the Secretary of State for the Department for Work and Pensions.
We’re run by the Board of the Pension Protection Fund (PPF) and funded by a levy on all eligible defined benefit and defined contribution schemes.
What we do
We work to ensure members who are victims of fraud in certain circumstances receive the appropriate compensation.
- We assess whether the legislation allows us to compensate a pension scheme.
- If we’re able to investigate a case, we collect evidence from records and individuals to assess whether there are reasonable grounds for believing that money was lost as a result of dishonesty.
- If a compensation application is successful, we pay compensation to scheme trustees or scheme managers.
How we're funded
All eligible pension schemes pay a levy. The Pensions Regulator (TPR) collect this on our behalf.
In 2021, the Department of Work and Pensions (DWP) gave us a loan to cover any shortfall that arises after we’ve collected the maximum levy available to us. This is so that we can pay eligible claims without unnecessary delay and meet the repayment schedule for the loan.
We currently collect the maximum level of levy, as set by DWP.