The UK government is to launch a Pension Protection Fund (PPF) to look after members of pension schemes whose sponsors become insolvent, and legislate to ensure that trustees have sufficient expertise in issues relating to pension governance, including investment.

The PPF, run by a statutory body, will charge levies on defined benefit schemes which will go into its pot. The levies will include a flat rate charge, plus a risk-adjusted one to restrict the amount of cross-subsidy that flows from well-funded schemes to those which are in a less secure position.