UK Coal falls into hands of state pension rescue scheme after blaze The arrangement protects 2,000 remaining jobs at the crisis-hit business, said management at UK Coal, but there were concerns about the strain the plan could put on the PPF's finances. In tandem, the PPF, backed by the Government but financed by the defined benefit pension schemes it protects, has agreed to shoulder payments for 7,000 employees past and present. Under the deal, around 3,000 people yet to retire will get 90pc of the pension they had expected. The remaining 4,000 who have already retired will receive the full amount. UK Coal staff belonging to a defined contribution scheme will be unaffected by the changes. The new business will now be run as an employee benefit trust making cash payments to the PPF. The Fund said the deal would give it a higher return in "the long run" than if the coal business had been allowed to collapse. Martin Clarke, the PPF's executive director for financial risk, said: "It became clear to everyone involved very quickly that, whatever the future held for UK Coal, its pension scheme would come into the PPF because of the size of its deficit." The PFF stressed that with £20bn in assets it could absorb "this level" of deficit. However, consultancy JLT Employee Benefits warned that the move could increase the PPF's annual levy on pension funds by up to 10pc.