Comments: September 2008 Members of the pension scheme, which closed to new joiners in 1999, must now rely on the Government's Pension Protection Fund (PPF) to provide their pensions. Unless they have already retired, the PPF will cap their annual pension at just over £27,000. Mr Robertson said that many of Lehman's high earning employees would be expecting pensions far in excess of that figure. A £100m black hole has emerged in the UK staff pension fund. The size of the shortfall surprised analysts. Administrators PricewaterhouseCoopers confirmed the £100m deficit, which compares with total assets in the fund of just £180m. Experts warned there could be only 50p or less in the pot for every £1 of pension owed to staff.

October 2008 The funding position of the scheme is not known, but some media reports have speculated that it faces a £100 million deficit and has assets of £180 million.

The PPF confirmed last month that it had been contacted by the scheme's trustees who were looking for assistance.

If the Lehman Brothers' scheme is found to be fully funded it will be allowed to wind-up by itself through a pensions buy out with an insurance company. But if it does not have sufficient assets to meet its liabilities it will be taken into the PPF.

If this happens people who have already retired, either because they reached the scheme's normal pension age or because they have retired due to ill health, will receive 100% of their benefits, but people who have not yet retired will receive 90% of the pension they had built up, up to a limit which is currently £30,856. They will also not qualify for their pension until they are 65.