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 5,318 schemes in the PPF 7800 Index is estimated to have increased over the month to £14.6 billion at the end of February 2021, from a deficit of £65.0 billion at the end of January 2021.
• The funding ratio increased from 96.5 per cent at the end of January 2021 to 100.8 per cent.
• Total assets were £1,740.2 billion and total liabilities were £1,725.6 billion.
• There were 2,839 schemes in deficit and 2,479 schemes in surplus.
• The deficit of the schemes in deficit at the end of February 2021 was £154.4 billion, down from £212.4 billion at the end of January 2021.
Lisa McCrory, Chief Finance Officer and Chief Actuary, said: “For the first time since April 2019, the position of the 5,318 UK defined benefit pension schemes moved into a surplus of £14.6 billion and the overall funding position of the PPF7800 Index improved to 100.8 per cent in February 2021.
“Improvements were driven by an increase in bond yields which reduced the value of bonds and led to a fall in the value of liabilities and assets. While this is welcome news, it’s a reminder of how sensitive funding is to yield movements as many schemes don’t completely hedge this risk. Despite this strong position, we recognise the situation remains uncertain.”
To view the full February 2021 update: PPF7800 Index
For a more in-depth look at the monthly changes to our data please see the link to the supporting data on the 7800 Index home page: PPF7800-Data-February-21
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