General Note
Pension Protection Fund and Financial Assistance Scheme members. The examples we give of the level of pay-back in respect of a 1% contribution depended on assumptions of how, if awarded, indexation would be applied. We now believe that, if we do succeed in gaining indexation, the method of assessment will be more favourable than in our examples. Another factor has also come to light. It is unlikely that indexation will be be paid to any members who did not have indexation in their original company scheme.
We founded the Deprived Pensioners Association because we are horrified by the injustice. We are in the same situation as you, with PPF payments. However, we are in a lucky position where we can afford to set up this association and drive forward this campaign.
Many members of the PPF and FAS are far less lucky and face daily struggles to make their payments stretch as the cost of living increases. We ask you to back friends, former colleagues, professional associates ...and help this cause.
Why would PPF and FAS members donate?
This appeal needs EVERYONE to donate, yet most people will have no personal interest in the outcome and won’t benefit if we win. All donations will be an act of generosity, of kindness to us: the older generation.
For PPF members - donating sufficient funds will create a chance to change the law - to the benefit of all who were working pre-1997.
We intend to win. When we do, all PPF members suffering from the pre-1997 rule will benefit from indexation and will be significantly better off. It is for this reason we ask PPF members to consider making a significant donation. In particular, we call out to members who are lucky enough not to be struggling financially. Each donation helps ALL members.
For FAS members - the figures are the same as for PPF members but, because of the different origins of FAS, there is a possibility that PPF members gain indexation and FAS do not.
We intend to track down as many PPF and FAS members as possible, but we are reliant on social media and word of mouth. Being opposed to our campaign, the PPF will not help us to make contact. We are working hard, but we don’t know how many of the 140,000 PPF and 120,000 FAS members can be found. We can’t assume ‘others’ will do the giving for us. Please help.
If you are a PPF member with ZERO indexation ...
If you donate1% of your annual PPF pay, and we succeed in removing the pre-1997 clause, you will in four years benefit by 25 times the amount of your donation.
It is not for us to tell you how much to contribute, but the following examples illustrate how the arithmetic works out for a given level of commitment.
Assume that a member donates 1% of their annual payment. Assume that indexation is at the capped level of 2.5%. In the first year, the increase in pay is two and a half times the donation. Assume a further three years of life, by that time, the aggregate increase will have become twenty-five times the donation. If we also get compensation for past lack of indexation, and you have been in the scheme for four years, it becomes almost 50 times your donation. Of course, each year beyond four that you live, the reward increases.
This example includes an implicit assumption that, for all your pre-1997 years you were in an indexed scheme. If you had 30 years pre-1997 but your scheme was indexed for only fifteen of them, you will benefit only half as much.
Please support us, not only for your own benefit but to achieve fairness for everyone in the PPF and FAS.
If you are a PPF member with PARTIAL indexation ...
Surprisingly, many of those with partial indexation stand to gain more from a removal of the pre-1997 clause than do those with zero indexation.
Assume we win our court case and you are awarded full indexation in place of your present partial indexation. Assume that your pre-97 and post-97 years are equal and that you thus get a 1.25% increment when those on full indexation are receiving a capped 2.5%.
Taking the first example, assume that a member donates 1% of their annual payment. Assume that indexation is at the capped level of 2.5%. In the first year, your reward is one and a quarter times your donation. Assume a further three years of life. By that time, the aggregate reward will have become twelve and a half times the donation. If we also get compensation for past lack of indexation, and you have been in the scheme for four years, it becomes close to 25 times your donation. Of course, each year beyond four that you live, the reward increases.
For the purpose of this website, we have made the simplifying assumption of equal service before and after 1997. Depending on your actual ratio you, will need to do the arithmetic to establish your odds.
Paradoxically, many of the partial indexation members stand to gain more, if we are successful, than will the zero indexation people. They will get a smaller benefit each year but, being younger, are likely to live more years, with the benefit rising all the time.
This example includes an implicit assumption that, for all your pre-1997 years you were in an indexed scheme. If you had 20 years pre-1997 but your scheme was indexed for ten of them, you will benefit only half as much.
Please support us, not only for your own benefit but to achieve fairness for everyone in the PPF and FAS.
If you are a PPF/FAS member with FULL indexation ...
Our aim is to achieve fairness for everyone in the PPF and FAS. While you are not directly affected by our campaign, we ask you to consider supporting us for the sake of colleagues and a sense of justice.
In addition to donating, the really valuable thing you can do is to spread the word.
Please get involved. We need all PPF pensioners to know about our campaign. Please reach out to any former colleagues, associations, trade groups or other professional communities and let them know what we are doing.
Can you share our story in your organisation’s newsletter?
Enquire among your friends as to whether any of them are in the PPF or FAS. Please share our message on social media.
By standing together, we can achieve fairness for everyone in the PPF and FAS. Will you join us?
By spreading the word, we can reach more members of the PPF and FAS and all work together.
Next steps ...
Read about our campaign and how we aim to help all PPF/FAS members who lack full indexation.