We work to ensure members who are victims of fraud in certain circumstances receive the appropriate compensation.
Compensation from us is the last resort
First, we’ll need to check whether the scheme’s employer is insolvent and consider whether there is any money or investments that can be recovered.How we calculate compensation
The amount of compensation we pay to a scheme is based on what the scheme has lost financially, due to dishonesty, and varies from case to case.It’s calculated by an accountant, based on the scheme loss, taking into account any recoveries and other adjustments set out in law. If the dishonesty was following a pension transfer, this means you may, ultimately, not receive the full value of your original transfer. We consult with the scheme trustee during this process.
We can only pay compensation to the trustee of the scheme
The law doesn’t allow compensation to be paid directly to members, it must go to the scheme.
Upon receipt of the FCF compensation the trustees will calculate each member’s entitlement and update you on your pension entitlement.
Currently, we understand that most trustees, following receipt of the final compensation payments, are planning on transferring pensions to another pension scheme. The trustee will let you know the scheme, provider and details of the pension benefits.