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 increased over the month to £442.3 billion at the end of February 2024, from a surplus of £425.4 billion at the end of January 2024.
• The funding ratio increased from 143.9 per cent at the end of January 2024 to 146.1 per cent.
• Total assets were £1,400.8 billion and total liabilities were £958.5 billion.
• There were 529 schemes in deficit and 4,521 schemes in surplus.
• The deficit of the schemes in deficit at the end of February 2024 was £3.9 billion, down from £4.3 billion at the end of January 2024.
Shalin Bhagwan, PPF Chief Actuary said: “Over the past month, we’ve seen positive movements across our estimates in the PPF 7800 index. In particular, there has been a continuation in the upward trend of the funding ratio, with a 2.2 per cent increase in February to 146.1 per cent. This change is the result of a £16.9 billion increase in the aggregate surplus of eligible schemes in the DB universe, to £442.3 billion. While the deficit of schemes in deficit fell by £0.4 billion to £3.9 billion.
These movements resulted from both a decrease in the liabilities of schemes in the DB universe by 1.2 per cent and a net rise in the value of assets held of 0.4 per cent. Falling liabilities were a result of an increase in shorter-dated gilt yields as stronger inflation data meant that markets priced a later and shallower rate-cutting path for global central banks. On the asset side, decreases in the value of bond portfolios were offset by high returns on overseas equities.”
View the March update and see the supporting data on the 7800 Index for 29 February 2024 here: The PPF 7800 index | Pension Protection Fund.
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