The Pension Protection Fund (PPF) has so far seen no increase in claims amid Covid-19, although it is “preparing” for an increase should this arise in the wake of the current crisis.

Speaking at the Pensions Age Virtual Conference, PPF panel manager, Helen Beckinsale, stated that despite concerns over the funding levels of defined benefit (DB) schemes amid Covid-19, “we haven’t yet experienced an increase in claims".

She acknowledged however, that the economic situation is “evolving really fast”, highlighting that there is “still a high degree of uncertainty as to what the impact might eventually be on DB schemes".

Beckinsale also emphasised that it was “critical” for trustees to reach out for the right support “as quickly as the practically can” where there is a distressed scheme.

“We appreciate there is a cost," she explained, "however, the ability to best protect members benefits and deliver the best outcome for member is the most important thing [trustees] will be thinking about and seeking support from our panel will definitely help them do that."

In light of the current pandemic, Beckinsale also acknowledged the need for legislation, such as the Corporate Insolvency and Governance Bill, to be “taken through at quite a pace” in order support employers throughout the crisis.

She noted however, that this pace had in turn, limited “to some extent” the time available for industry discussion and scrutiny of the bill.

Industry experts have previously raised concerns that the bill could risk diluting the amount available to DB schemes and the PPF in the case of a sponsoring employer becoming insolvent, and have urged government to consider amendments.

In response to a query on this issue, Beckinsale stated: “There is a working group that is looking at the Governance Bill at the moment, and in general we support the overall intent of the bill.

“Any action to keep employers running is clearly in the interest of DB schemes, their members and the PPF."

She continued: “We are working closely with the government to address any concerns that have been raised about specific provisions, and we will continue to do that and to make sure pensions schemes and the PPF aren’t disadvantaged.”

More broadly, Beckinsale added that there are a "number of different issues" facing the PPF at the moment.

She concluded: "We’ve got judgements like Hampshire, that we’re currently working on and trying to understand nay impact on us, and we continue to look at the levy and try to improve the levy process.

"We continue to watch the market and make sure we react in the right way, in a positive way for our members and levy payers, so I'm sure we’ll be facing a number of different challenges over the next few years."

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