06 November 2007
Following lobbying from groups such as the Equal Opportunities
Commission (EoC), pensions reform minister Mike O'Brien has spoken
of the Government's plans to draw up laws for Pension Protection
Fund (PPF) compensation to be shared on divorce.
At a Deloitte public finance roundtable, Mr O'Brien said: "One
important area we will tackle is PPF compensation on divorce,
something I know the EoC and others have raised before. At present
it is not possible to divide PPF compensation upon divorce, though
courts take it into account. The Government want to make things
simpler and fairer, especially for women. So we intend to legislate
to ensure PPF compensation can be shared."
On 6 April 2005, the Government set up a fund, known as the
Pension Protection Fund. One of its aims is to provide increased
protection for members with defined company pension benefits (i.e.
final salary benefits), where the pension scheme begins to wind-up
on or after 6 April 2005 and where the employer is insolvent and
the pension scheme is underfunded.
