The Department for Work and Pensions (DWP) has launched a consultation to seek views on a proposed technical change to help trustees – or managers – progress FCF applications.
We’re aware that a number of schemes that might be eligible for FCF compensation have exhausted most or all of their scheme assets. This poses significant challenges for trustees in progressing an FCF application.
The proposed change will allow the Board of the Pension Protection Fund (PPF), who manages the FCF, to make an interim payment to trustees – or managers – of schemes with exhausted scheme assets where we are confident a fraud compensation application will be successful.
This interim payment will allow trustees to cover the costs needed to, for example, appoint an accountant and make recoveries.
Any interim payments will be deducted from the total FCF compensation due once the claim has been processed.
You can read the proposals and take part in the consultation process on the DWP site.
The consultation closes on Friday 9 September 2022.