Pensions - Articles - PPF publish PPF 7800 Index for October 2021

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.

 • The aggregate surplus of the 5,318 schemes in the PPF 7800 Index is estimated to have decreased over the month to £103.2 billion at the end of October 2021, from a surplus of £108.8 billion at the end of September 2021.
 • The funding ratio decreased from 106.4 per cent at the end of September 2021 to 105.9 per cent.
 • Total assets were £1,844.0 billion and total liabilities were £1,740.8 billion.
 • There were 2,402 schemes in deficit and 2,916 schemes in surplus.
 • The deficit of the schemes in deficit at the end of October 2021 was £118.2 billion, up from £109.4 billion at the end of September 2021.

 Lisa McCrory, PPF’s Chief Finance Officer and Chief Actuary, said: “This month, we’ve seen the aggregate surplus for the 5,318 schemes we protect decline for the first time since July to £103.2bn. We’ve also seen the number of schemes in deficit increase from 2,383 to 2,402 and their aggregate deficit increase by £8.8bn to £118.2bn.

 “While this marginal decline in the aggregate surplus is mainly due to a decrease in bond yields, it’s a reminder of the ongoing volatility in scheme funding levels and the risk the schemes we protect pose on our reserves and funding position.”

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

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