Our funding

We’re funded by a levy on all eligible schemes.

Fraud compensation levy

We’re not obliged to raise a levy each year, but we’ve received a number of claims with a total value of over £47 million. We expect to receive more applications from schemes following a court judgment in November 2020 confirming which types of schemes may be eligible to apply for compensation.

We confirmed in our 2020/21 Annual Report that the FCF had assets of £33.9 million. 

The Compensation (London Capital & Finance plc and Fraud Compensation Fund) Act received Royal Assent on 20 October 2021. The Act allows the Department for Work and Pensions (DWP) to give us a loan to cover the significant value of the additional claims we expect to receive, and pay FCF compensation to schemes whose members are victims of occupational pension scheme fraud. But it’s only to cover any shortfall that arises after we’ve collected the maximum levy available to us.

DWP laid regulations in Parliament on 10 March 2022 which increase the maximum levy rates to £0.65 per member for Master Trusts, and £1.80 per member for other eligible occupational pension schemes. So we can pay eligible claims without unnecessary delay and meet the government’s repayment schedule, we’ve set the 2022/23 levy at these maximum rates, based on the amended regulations.

Previous levy rates

In 2021/22 we charged a levy of 75p per member for eligible occupational pension schemes, and 30p per member for master trusts.

To learn more about general pension scheme levies or to get help and support with payments, please visit The Pensions Regulator's website.

How the fund is invested

Read our Fraud Compensation Fund Statement of Investment Principles.

Apply for compensation 

We consider applications in line with legislation. Find out if your scheme is eligible.

How to apply

 

Who we are

We’re a statutory public corporation accountable to Parliament through the Secretary of State for the Department for Work and Pensions. 

Who we are