Pensions - Articles - Pension Protection Funds PPF7800 Index for December 2020

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. 

 • The aggregate deficit of the 5,318 schemes in the PPF 7800 Index is estimated to have increased over the month to £86.4 billion at the end of December 2020, from a deficit of £78.8 billion at the end of November 2020.
 • The funding ratio decreased from 95.8 per cent at the end of November 2020 to 95.5 per cent.
 • Total assets were £1,834.1 billion and total liabilities were £1,920.5 billion.
 • There were 3,206 schemes in deficit and 2,112 schemes in surplus.
 • The deficit of the schemes in deficit at the end of December 2020 was £230.3 billion, up from £221.4 billion at the end of November 2020.

 Lisa McCrory, PPF Chief Financial Officer and Chief Actuary said: “Our latest PPF 7800 Index as at 31 December showed a relatively stable funding position over the final month of the year. Overall the 5,318 schemes reported that while the funding ratio was broadly unchanged, the aggregate deficit had increased slightly by £7.6 billion to £86.4 billion.

 “2020 was an extremely challenging year as the Covid crisis impacted market movements, and further challenges are expected in 2021.”

 For a more in-depth look at the monthly changes to our data please go to: PPF7800-Data-December-20.pdf
 To view the full update: PPF7800 Index

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