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 5,050 schemes in the PPF 7800 Index is estimated to have decreased over the month to £475.0 billion at the end of August 2024, from a surplus of £475.5 billion at the end of July 2024.
• The funding ratio decreased from 148.5 per cent at the end of July 2024 to 148.2 per cent.
• Total assets were £1,460.1 billion and total liabilities were £985.1 billion.
• There were 463 schemes in deficit and 4,587 schemes in surplus.
• The deficit of the schemes in deficit at the end of August 2024 was £3.5 billion, up from £3.4 billion at the end of July 2024.
Shalin Bhagwan, PPF Chief Actuary, said: “Our 7800 Index update paints a relatively stable picture of the UK DB universe this month, with a very slight decrease in the estimated aggregate surplus of the 5,050 schemes, falling from £475.5 billion at the end of July 2024 to £475.0 billion at the end of August 2024. Although the first two weeks of August were volatile for financial markets, by the end of the month most asset classes were back to similar levels to where they ended in July, resulting in fairly small moves in both asset and liability values.
“This is reflected in the funding ratio decreasing from 148.5 per cent at the end of July 2024 to 148.2 per cent, and the deficit of the schemes in deficit at the end of August 2024 going up to £3.5 billion from £3.4 billion at the end of July 2024.”
View the September update and see the supporting data on the 7800 Index for 31 August 2024 here: The PPF 7800 index | Pension Protection Fund.
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