Key achievements and milestones:
• Celebrated 20 years of protecting people’s pensions; a “policy success story.”
• Reduced the levy to its lowest ever level.
• £1.2bn paid out to its members.
• Maintained a strong financial position across the year.
• Growth portfolio delivered strong 6.0% return.
• ServiceMark with Distinction awarded for outstanding customer service.
The PPF, which ultimately protects 8.8 million members of defined benefit (DB) schemes in the UK, has maintained its robust financial position. Total assets under management were £31.2 billion as at the end of March 2025, compared with the liabilities of £17 billion for the schemes which have transferred to it. Furthermore, following a strong performance from the growth portfolio of 6.0 per cent, the reserves that the PPF purposefully holds against future claims on the Fund, longevity risk, and any additional unexpected market risk, grew from £13.2 billion to £14.1 billion.
The PPF continued to deliver outstanding customer service to the more than 400,000 PPF and Financial Assistance Scheme (FAS) members it looks after. This year, the PPF also achieved ServiceMark with Distinction from the Institute of Customer Service – an accolade held by only twenty-eight organisations in the UK – recognising its consistently high levels of satisfaction from its members and levy payers. It also completed a record 45 Fraud Compensation Fund (FCF) cases, more than doubling the previous year’s total, benefitting over 2,300 people.
During the year, the PPF confirmed its plans to reduce the PPF levy for 2025/26 to £45 million and inclusion of a provision in its rules to calculate a zero conventional levy, should legislative changes in the Pension Schemes Bill progress sufficiently during the year. The PPF has also continued to prioritise supporting the DWP’s further consideration of its compensation framework, particularly levels of indexation on pre-97 pensions.
Impact continued to be a focus for the organisation, as across the year its investments supported significant economic growth and made a real difference to communities across the length and breadth of the UK. Research published by Frontier Economics in April showed that £15 billion – almost half – of the PPF’s investments are invested in the UK and collectively contribute to supporting £38.8 billion of UK economic activity, 460,000 jobs, and £7.5 billion in tax contributions.
Michelle Ostermann, Chief Executive Officer, said: “It’s a proud moment in our history as we mark twenty years of the PPF protecting UK defined benefit pensions, while acknowledging there is more for us to do and deliver for those who rely on us for protection – now and in the future. We will continue working hard in the best interests of our members and levy payers and believe it is the right time to reduce costs for levy paying schemes and their employers, as well as to consider the levels of indexation we pay our members. Having reached a position of financial maturity, our focus now is on working with government to drive change that benefits all of our members and levy payers.”
Kate Jones, Chair of the PPF, added: “This year has been one of reflection on how far we’ve come, but also looking ahead to the challenges and opportunities for the future. While our financial strength further underpins our ability to protect the pensions of our current and future members, we fully recognise this also brings responsibility and opportunities to work with government to progress the issues that matter most to our members and levy payers.”
The PPF has therefore welcomed the Pension Schemes Bill, which contains measures which would benefit PPF members and levy payers and will act quickly and effectively to implement any changes passed by Parliament.
In April, the organisation published its 2025-28 strategy, which outlines its priorities for the next three-year period to: act in the interests of those it protects; adapt and evolve; build on its strong foundations; and help shape positive change in the pensions industry.
In line with this strategy, the PPF will further evolve how it operates to deliver continued customer service excellence and strong investment performance whilst ensuring it runs efficiently. With the PPF’s enduring role and operational maturity, it will continue to work in partnership with government and industry to consider how it can help give people greater financial security in retirement, both for the members of schemes it protects and more widely.
The PPF’s Annual Report and Accounts 2024/25, ’20 years of protecting people’s futures’, is available to read here.
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