In the past six months there has been a great deal of attention on pensions, particularly focused on issues such as BHS and scheme deficits. Meanwhile, the Pension Protection Fund has been hard at work behind the scenes to ensure our members receive consistent, high-quality customer service.
For members of schemes in the assessment period, like BHS and Austin Reed, the PPF is very much involved in making sure members are protected and that they are receiving compensation at PPF levels.
When an employer becomes insolvent, we work closely with the trustees to make sure that they are familiar with taking a scheme through an assessment period, ensuring that pensioners continue to be paid and that payments are seamless.
Even before a scheme enters into the PPF, we are committed to making sure they are run as smoothly as possible for their members while their future is determined
Therefore, even before a scheme enters into the PPF, we are committed to making sure they are run as smoothly as possible for their members while their future is determined.
For members of schemes that have transferred to the PPF, such as Woolworths and HMV, we take full control of their compensation and have just celebrated our first anniversary of insourcing the PPF member services function.
We have already transferred 22,000 new members since insourcing, and paid £365m to more than 124,000 pensioners.
Control and flexibility
Now that the PPF is equivalent to one of the largest pension funds in the UK, bringing member services in-house has brought us closer to our members and given us greater control and flexibility.
More than 225,000 members have now transferred to the PPF, and although people don’t choose to become members, the aim is to treat them as though they had. And our members tell us we are succeeding.
They say we are “extraordinarily helpful and polite”, offer “outstanding customer service”, and that our letters are “jargon-free” and “a breath of fresh air”.
A recent member survey has also demonstrated the success of the project, with more than 95 per cent of members saying they are satisfied with the level of service they receive.
Online tool shows compensation levels
Launching our new member website has been a particularly successful way of communicating, as well as allowing members to manage their own compensation.
Members who are yet to retire are now able to view their benefit statements online, and use a benefit modeller, which can be updated in real time to see what level of compensation they can expect to receive at different retirement ages. More than 18,000 members have now signed up to the site and are reaping the benefits.
While this is an eventful time in the world of pensions, members of defined benefit schemes can be reassured that the PPF is there to protect their financial futures.
Sara Protheroe is chief customer officer at the Pension Protection Fund
