pension protection fund

The Pension Protection Fund (PPF) is a UK public corporation, established by the Pensions Act 2004 in response to a series of high-profile company insolvencies that left their pension schemes underfunded. Its primary mission is to provide a safety net for members of eligible defined benefit pension schemes by paying them compensation if their employer goes out of business and the scheme can no longer afford to pay their promised pensions. The PPF is funded by levies charged on the pension schemes it protects, income from its investments, and recoveries of money from insolvent employers.