PPF and overseas employers: new regulations fail to solve the problem

By Ian Greenstreet

We have previously reported on a gap in the coverage of the Pension Protection Fund (PPF) where a scheme that is eligible for PPF entry has an employer based overseas. Essentially the problem is that the list of ‘insolvency events’ suffered by an employer that are required in order to qualify a scheme for entry to the PPF does not include events occurring outside the UK. It may, in some circumstances, be possible for secondary UK insolvency events to be triggered that could allow a scheme PPF entry, but this will generally require the employer to have a trading presence in the UK. In many cases, the initial insolvency of the employer would have resulted in the effective closure of any UK establishments, making secondary insolvency proceedings unlikely to succeed. Meanwhile, these schemes remain technically ‘eligible’ for PPF entry and are required to pay the annual levy despite members having no effective protection.

This is exactly what happened in the case of Olympic Airlines. The employer, which had UK-based employees and a UK pension scheme, had entered liquidation in Greece. The attempt to instigate secondary insolvency proceedings was rejected by the Court of Appeal as by the time those proceedings were launched Olympic Airlines no longer carried on commercial operations in the UK…

Click on the link below to read the rest of the Nabarro briefing.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

View more analysis from The Lawyer


Lacon House
84 Theobald's Road

Turnover (£m): 116.70
No. of lawyers: 405