Good news about your PPF compensation

WitsEnd101

I have just received an email from the PPF advising me the following:

Currently PPF compensation relating to pensionable service before 6
April 1997 doesn’t increase in payment. However, in April 2026, Parliament passed a law to allow inflation increases relating to pensionable service before 6 April 1997 if the former scheme rules provided for mandatory pre-97 increases.

It states that as my scheme paid mandatory increases on benefits built up before 6 April 1997
that all my PPF compensation relating to service before this date is eligible for annual increases, once this law comes into effect. I am delighted by this news.

I just wanted to share this positive news as I am sure that some folk on the forum may also be PPF members. Also I wondered if this might be backdated as I am already receiving compensation - the email does not say.

SnowMan

Thanks for letting us know that this has started to happen now. This is the Pension Protection Fund page on this.

https://www.ppf.co.uk/our-members/Will-my-payments-increase/pre-97

The increases only apply going forward (not retrospectively)

This is the MSE thread from when this was initially announced in the budget

https://forums.moneysavingexpert.com/discussion/6642961/fas-ppf-may-start-offering-inflation-increases-on-pensions-prior-to-1997

WitsEnd101

Thanks for the additional info - very helpful.

westv

Got my email today too. I wonder when we will be advised as to the actual amount of increase.

My FAS payment includes a proportion for the "Hampshire" uplift. I did ask them previously if that will affect any increases and I was told they wouldn't "revisit any calculations" (so max 2.5% on my total payments) but the email refers to "standard assistance"

Kryten_the_Titan

https://forums.moneysavingexpert.com/discussion/comment/82070369#Comment_82070369

By how much the increase is calculated, according to their wensite:
"Every January we apply increases to any increasing PPF compensation or FAS assistance that’s in payment. 

When we calculate the percentage increase, we look at the Consumer Price
Index (CPI), which tracks the rate of inflation. We base the percentage
increase on the CPI increase over the twelve months up to the previous
May, subject to a maximum of 2.5 per cent, as set out in law."

I'm not sure if this means last May's CPI value, or an average of June 2025 to May 2026, probably the former. Either way the CPI would be 3.4% or 3.5% respectively, so it looks like a 2.5% uplift is on the cards for January 2027.

westv

https://forums.moneysavingexpert.com/discussion/comment/82070369#Comment_82070369

I asked AI. It says "standard assistance" is my original payment (around £5,500 or so annually) before the Hampshire uplift

Edit: Although I have asked the FAS for the definitive answer.

Linton

Mrs L has a DB pension partially covered by an annuity bought by the pension scheme and the rest comes from the FAS. What has happened in the past is that as she has inflation matching under her pre-1997 employment contract the Annuity increases with inflation each year. However since FAS did not provide for pre 1997 inflation matching the FAS pension has been reducing each year by about the same amount.

From the letter she received it appears that by the end of this year the annual deduction in the FAS pension will cease. Sadly there is no rewriting of history so the previous deductions wont be unwound.

Other people may be in the same situation.

westv

https://forums.moneysavingexpert.com/discussion/comment/82071072#Comment_82071072

Just got a reply from the FAS (I am impressed with how quickly they did).

They say inflation increases will apply to all my pension (which is all pre 97), not just the original (non Hampshire) payment.