Pensions - Articles - PPF issue PPF 7800 Index January 2022 update


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 surplus of the 5,215 schemes in the PPF 7800 Index is estimated to have increased to £129.3 billion at the end of December 2021, from a surplus of £81.4 billion at the end of November 2021.
 • The funding ratio increased from 104.6 per cent at the end of November 2021 to 107.7 per cent.
 • Total assets were £1,818.0 billion and total liabilities were £1,688.7 billion.
 • There were 2,152 schemes in deficit and 3,063 schemes in surplus.
 • The aggregate deficit of the schemes in deficit at the end of December 2021 was £97.0 billion, down from £125.9 billion at the end of November 2021.

 Lisa McCrory, PPF’s Chief Finance Officer and Chief Actuary, said: “Last month’s significant rise in bond yields saw the aggregate surplus of the 5,215 schemes we protect increase by £47.9 billion to £129.3 billion. The rise in bond yields also means there are currently fewer schemes in deficit, with a reduced aggregate deficit of £97.0 billion. The unpredictable fluctuations in the 7800 funding ratio over the past few months are a clear sign of the ongoing market volatility and the need for caution.”

 View the January update and see the supporting data on the 7800 Index for 31 December here: The PPF 7800 index | Pension Protection Fund
  

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