The call follows the National Association of Pension Funds’ suggestion that the pensions lifeboat should be protected by the government in response to the latest consultation on how the PPF should be funded.
David Trenner, technical director at Intelligent Pensions, said: “Millions of people have personal pensions hit by falls in their fund values of up to 40%. Millionsmore cannot even afford to pay into a pension. Yet these are the people being asked to help guarantee the pensions of those lucky enough to have employer-funded guaranteed pensions based on earnings.”
Trenner added that since the government has no money of its own, cash used to support the PPF would come from the taxpayer.
Richard Hunt, head of media operations at the PPF, responded to the suggestion by stating that the PPF was sufficiently funded to pay out benefits for the next 25 years and that the average annual payout was currently just £4,500.
The PPF announced earlier this month that it would allow flexibility for schemes strugging to meet their levy payments.
