More pension schemes fall into safety net

FOUR more workplace pension schemes were taken on by the pensions lifeboat in January, resulting in a further 1,427 UK workers receiving, or set to receive, compensation.

There are now 113 schemes in the Pension Protection Fund (PPF), which covers scheme members in the event of their employer going bust. The PPF has paid out 119 million in compensation since it began in 2005, including about 3m last month.

More than 34,000 people are receiving, or will receive, compensation in the future, with the average annual payout about 4,000. A total of 357 schemes containing 203,473 members are currently being assessed for eligibility for PPF compensation, with Readers Digest to be added to that number after entering administration this week.