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 deficit (total s179 liabilities less total assets) of the schemes in the PPF 7800 Index is estimated to have increased to £168.2 billion at the end of October 2020, from £166.1 billion at the end of September 2020.
• The funding level decreased from 91.4 per cent at the end of September 2020 to 91.2 per cent.
• Total assets were £1,753.4 billion and total liabilities were £1,921.6 billion.
• There were 3,617 schemes in deficit and 1,805 schemes in surplus.
• The deficit of the schemes in deficit at the end of October 2020 was £279.5 billion, down from £279.6 billion at the end of September 2020.
Lisa McCrory, PPF Chief Finance Officer & Chief Actuary, said: “The latest PPF 7800 Index shows a relatively small change in the funding position of schemes in October. The funding level has seen a slight dip of 0.2 percentage points to 91.2 per cent and a £2.1 billion increase in the aggregate deficit of the 5,422 schemes to £168.2 billion.
“The drop was caused by a decrease in asset values due to a fall in bond and equity prices, the movement in bond yields also caused liability values to fall.
“We remain mindful that global market movements continue to be volatile in the second wave of COVID-19.”
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