UK - The Pension Protection Fund (PPF) has confirmed a section of the Lehman Brothers Pension Fund has entered the organisation's assessment period.

Trustees of the part of the scheme covering Lehman Brothers Limited - the now-bankrupt UK division - will work with the PPF to ensure the details of all the scheme members, and their benefit entitlements, are "complete, up-to-date and accurate".

Once this has been completed a valuation of the scheme will be carried out to decide whether there is sufficient funding to 'buyout' benefits with an insurance company that are higher than the PPF compensation levels.

Once the assessment period has finished, which can take up to two years, the scheme will either enter the PPF or be allowed to "wind-up outside" through a buy-out with an insurer, as demonstrated by UK Can Pension Plan's deal with Pension Insurance Corporation (PIC). (See earlier IPE article: PIC agrees buyout of scheme in PPF assessment)

Officials from the Lehman Brothers Pension Scheme, which has around 2,400 members and of which only 180 are pensioners, began the process of possibly entering the PPF in September when they filed a Section 120 notice. (See earlier IPE article: Lehman's UK pension seeks PPF rescue)

If the pension fund is successful in entering the PPF, existing pensioners will be entitled to receive 100% of their benefits, however other members below the age of 65 can only receive 90% of their benefits up to a cap of £27,770 (€35,412).

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