European Court: UK Pension Lifeboat Should Lift Compensation Cap
Last Thursday, the Court of Justice of the European Union ruled that pensioners should receive a minimum of 50 percent of the value of their pension in the event that their employer eventually goes bust.
The Pension Protection Fund (PPF), the pensions lifeboat of the United Kingdom, had imposed a cap for the compensation of employees who had lost their pensions when their employers went under at £35,000.
The CJEU reviewed the case of Grenville Hampshire who lost approximately 67 percent of his pension when Turner & Newall, his former company, entered insolvency.
Last Thursday, it ruled that “every individual employee…is entitled to compensation of at least 50 per cent of the total value of his accrued rights or entitlements to old-age benefits in the event of the insolvency of his employer.”
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