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 5,318 schemes in the PPF 7800 Index is estimated to have increased over the month to £83.2 billion at the end of August 2021, from a surplus of £62.4 billion at the end of July 2021.
• The funding ratio increased from 103.5 per cent at the end of July 2021 to 104.7 per cent.
• Total assets were £1,856.3 billion and total liabilities were £1,773.1 billion.
• There were 2,483 schemes in deficit and 2,835 schemes in surplus.
• The aggregate deficit of the schemes in deficit at the end of August 2021 was £130.2 billion, down from £142.2 billion at the end of July 2021.
Lisa McCrory, PPF’s Chief Finance Officer and Chief Actuary, said: “Our latest 7800 Index shows there’s been a small improvement of £20.8 billion in the aggregate funding position for the 5,318 UK defined benefit pension schemes we protect. This change was caused by a rise in bond yields coupled with an increase in the value of equities, which saw the funding ratio increase by 1.2 percentage points to 104.7%.
“The number of schemes in deficit reduced by 117 to 2,483 in August, and the total shortfall of these schemes fell slightly by £12 billion to £130.2 billion, highlighting the ongoing risk we’re exposed to.”
View the August 2021 update here: The PPF 7800 index | Pension Protection Fund
For a more in-depth look at the monthly changes to our data
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