Buy-ins and buyouts will be covered by Financial Services Compensation Scheme

The Financial Services Compensation Scheme (FSCS) has confirmed to Occupational Pensions that members of occupational schemes that are subject to a buyout or a buy-in are covered by the compensation scheme if the insurer defaults.

This is provided that the individual members meet the eligibility criteria (which in general they should), that the individual policies are “protected contracts” and that the member was not resident outside the European Economic Area when the policy commenced.