Consultants have warned that the proposed pension protection fund (PPF) may fall short of its promise to protect pension payments in the UK following confirmation of its planned introduction in the annual Queen's speech.

Tim Webb, chief actuary at Gissings, said initial concerns centre on solvent companies that have been winding up their pension schemes since 11 June, this year. Such schemes are obliged to top the scheme up in order to make sure the cost of paying benefits to members can be met.