Pensions - Articles - PPF publish latest PPF 7800 Index figures for January 2025


This update provides the latest estimated funding position, based on adjusting the scheme valuation data supplied to The Pensions Regulator as part of the schemes’ annual scheme returns, 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

 

 Shalin Bhagwan, PPF Chief Actuary said: “This month’s PPF 7800 Index indicates that aggregate defined benefit (DB) scheme funding strengthened in January. The estimated aggregate surplus rose by almost £13bn to £239bn, further illustrating the continued strength and resilience of DB scheme funding.

 There was significant intra-month volatility in gilts, as markets tried to weigh up the impact of tariffs on growth and inflation, although yields settled a few basis points lower than at the end of December. This, coupled with strong growth in UK and global equities, drove higher increases in both equity and bond asset values relative to the increase in liabilities, with the net result being improved overall funding.”

 View the February update and see the supporting data on the 7800 Index for 31 January 2025 here: The PPF 7800 index | Pension Protection Fund.
  

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