Pensions - Articles - Comment on latest PPF 7800 figures

 Vishal Makkar, Head of Retirement Consulting at Buck in the UK comments: “Funding levels for the schemes in the PPF Index increased again during May, driven by even higher gilt yields. As a result, the PPF Index funding ratio now sits at 118.9%.
 
 “For some scheme sponsors the outlook may not be so positive. The ONS recently announced that GDP fell for the second month in a row in April, dropping by 0.3% following a decrease of 0.1% in March. High inflation and the cost of living crisis could also continue to negatively impact industries like hospitality, which in many cases are still reeling from the effects of the pandemic. Meanwhile, high energy costs and ongoing supply chain disruption remain key challenges for other scheme sponsors, particularly in sectors such as manufacturing.
 
 “It’s not plain sailing for trustees either. On the regulatory front, further delays to the new DB Funding Code have just been announced. The new Code is now not due until September 2023, with the next consultation announced for autumn 2022. For a few schemes, this could be a welcome postponement, but for many the continuous delays and lack of certainty will just add to the challenges currently facing trustees.”