Pensions - Articles - Pension Protection Fund release May update for PPF7800 Index

 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 surplus of the 5,131 schemes in the PPF 7800 Index is estimated to have increased over the month to £378.6 billion at the end of April 2023, from a surplus of £359.3 billion at the end of March 2023.
 • The funding ratio increased from 133.2 per cent at the end of March 2023 to 136.1 per cent.
 • Total assets were £1,426.1 billion and total liabilities were £1,047.5 billion.
 • There were 691 schemes in deficit and 4,440 schemes in surplus.
 • The deficit of the schemes in deficit at the end of April 2023 was £4.5 billion, down from £5.7 billion at the end of March 2023.
 
 Lisa McCrory, PPF Chief Finance Officer and Chief Actuary said: “In April, with the dust settling on the turmoil that impacted the banking sector in the previous month, we saw government bond yields rise and market’s turning their focus back to sticky inflation. As yields rose, the value of scheme liabilities fell while, due to schemes in aggregate being under-hedged to interest rates, the estimated value of scheme assets fell more slowly – ultimately resulting in an improved funding ratio and aggregate surplus. We also saw the publication of updated guidance from The Pensions Regulator regarding the implementation of Liability Driven Investment strategies and we would encourage scheme trustees to take note of this.”