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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.
“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.” |
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