Pensions - Articles - Pension Protection Fund publish January 2021 PPF7800 Index


This update provides the latest estimated funding position, on a section 179 (s179) basis, for the defined benefit pension schemes potentially eligible for entry to the Pension Protection Fund (PPF).

 A scheme’s s179 liabilities represent, broadly speaking, the premium that would have to be paid to an insurance company to take on the payment of PPF levels of compensation. This compensation may be lower than full scheme benefits. 

 Highlights 
 • The aggregate deficit of the 5,318 schemes in the PPF 7800 Index is estimated to have decreased over the month to £65.0 billion at the end of January 2021, from a deficit of £86.4 billion at the end of December 2020.
 • The funding ratio increased from 95.5 per cent at the end of December 2020 to 96.5 per cent.
 • Total assets were £1,808.4 billion and total liabilities were £1,873.4 billion.
 • There were 3,149 schemes in deficit and 2,169 schemes in surplus.
 • The deficit of the schemes in deficit at the end of January 2021 was £212.4 billion, down from £230.3 billion at the end of December 2020.

 
 Lisa McCrory, Chief Finance Officer and Chief Actuary, said: “Our latest 7800 Index funding position has improved to 96.5 per cent in January 2021, slightly above pre-pandemic levels of 95.9 per cent in January last year.

 “A fall in bond and equity market indices over the month led to a decline in the value of assets and liabilities. However, overall we’re seeing an improved position for UK DB schemes to start the year.”

 For a more in-depth look at the monthly changes to our data 

 To view the full update: PPF7800 Index
  

Back to Index


Similar News to this Story

Pandemic demonstrates the value of retirement advice
Aegon and Next Wealth have launched a new report Managing Lifetime Wealth: retirement planning in the UK, which is a comprehensive guide to the key fa
DB Funding reform could now be in slow lane
A written statement to Parliament published last night (Tuesday 2nd) suggests that reform of the funding of Defined Benefit pension schemes could be o
Index shows defined benefit deficit wiped out in February
The aggregate funding deficit for the UK’s 5,000-plus corporate defined benefit (DB) pension schemes has been wiped out over the last month, PwC analy

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.