A 63 years old pensioner who took early retirement after 30-year service on a pension of £70,000 a year; the company went into liquidation and the PPF became involved.

The scheme NRD was 65. He took his pension at age 63 – two years early.
The key here is that they ‘retired early’, that is, before the scheme’s NRD:

The compensation cap is applied and reduced actuarially for age 63, because of early retirement and hadn’t reached the scheme’s normal pension age when employer went bust; annual compensation payments from the PPF will be capped if you have retired early.

But, now this pensioner will have ‘’his’’ cap increased:
Their cap will increase to: £36014 (ie factor reduced level aged 63) x3% x10 add £36014 = £46818

£46818 x 90% = £42136 PPF Compensation Limit for this pensioner

Dead cert ask for OCT 17?: YES

The PPF doesn’t guarantee full pensions for everyone.
It has significant implications for high-earners with significant pension accrual and this long-service cap has significant benefits.

However, if you retired after or on the NRD of the scheme, things are much better. This is how the PPF describe it:

‘’You will have been receiving a pension from your scheme before your former employer went bust. If you were beyond the scheme’s normal retirement age (NRD) when your employer went bust, the PPF will generally pay you 100 per cent of your pension.’’

Here’s a bit more on the PPF – with more on the PPF long service cap in your module.

Keep doing the doing