On the go: The Pension Protection Fund has confirmed new compensation cap limits.
From 1 April 2019, the cap at age 65 has been set at £40,020. This is an increase of 2.6 per cent from the 2018/19 cap which was £39,006.
The increase reflects the level of wage inflation over the period. As the cap is applied before members’ compensation is reduced to 90 per cent,, the actual amount a capped member would receive retiring at 65 is £36,018.
The new cap will be increased for all members that retire from 1 April 2019 onwards. The later a member retires, the higher the annual cap is set.
Only 0.5 per cent of members are affected by the compensation cap.
