Pension experts have revealed that the scheme set up to protect final salary pensions could be in trouble. With the recent increase in pension shortfalls, the Pension Protection Fund (PPF) is in danger of being submerged from high volumes of claims being made as a result of the credit crunch. According to the findings, up to 91% of final salary schemes can’t afford to pay out benefits, with the under-funded schemes carrying deficits of more than £228 billion. The PPF takes around £700 million from companies every year, but this has proved too little and doesn’t cover its liabilities. The PPF has a deficit of around £550 million. The PPF has already carried the weight of 62 schemes that failed, which include Woolworths, and Lehman Brothers. There are now growing concerns that further failed schemes will result in the PPF to collapse, leaving future companies at risk of bankruptcy vulnerable [...]

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