The assumptions are used to estimate the cost of securing PPF levels of compensation with an insurer and underpin section 143 valuations conducted during PPF assessment periods, as well as section 179 valuations used for a variety of purposes including, historically, PPF levy calculations.
The consultation follows a review of bulk annuity market pricing, which found pricing had become more competitive since the PPF’s last detailed review. The main proposed changes cover discount rates and longevity assumptions. The proposed updates are intended to keep the assumptions aligned with current buy-out pricing and would generally reduce estimated scheme liabilities under the valuation bases.
The PPF regularly reviews market developments to ensure its assumptions remain appropriate. The current standard assumptions were set after a 2023 review, with guidance updated in 2024 to allow bespoke adjustments to the section 143 discount rate in limited circumstances.
Aaron Pang, Acting Chief Actuary at the Pension Protection Fund, said:"We regularly review our valuation assumptions to ensure they remain appropriately aligned with the bulk annuity market and continue to meet the objectives set out in legislation.
Our latest review suggests that market pricing has moved since the assumptions were last comprehensively updated. The proposals in this consultation are intended to reflect those developments while continuing to provide a practical and proportionate framework for valuations. We encourage trustees, actuaries, advisers, insurers and other stakeholders to review the proposals and share their views."
The consultation document is available in the PPF's valuation guidance section on the website: Consultation documents | Pension Protection Fund
The consultation closes at 5pm on 16 September 2026. Subject to the outcome of the consultation, the PPF intends to publish its final decision in October 2026. The proposals currently envisage the revised assumptions applying to valuations with an effective date on or after 31 May 2026.
Responses can be submitted by email to: AssumptionsConsultation@ppf.co.uk.
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