UK's Pension Protection Fund wins cap appeal but DWP challenge rejected

The Pension Protection Fund (PPF) can perform a single, ex ante calculation for compensation, but the result cannot be immune from challenge, the Court of Appeal has ruled. In a court ruling on the compensation scheme's cap, delivered today (19 July), the higher court allowed a PPF appeal and agreed it could adopt a value test for calculating compensation on a one-off basis, as long as it corresponds to at least 50% of a members' pre-insolvency entitlement. This compares to an a ‘lifetime payments test', which would have required the PPF to continually calculate whether someone's give...