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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
• The aggregate surplus of the 5,131 schemes in the PPF 7800 Index is estimated to have increased over the month to £446.1 billion at the end of July 2023, from a surplus of £437.0 billion at the end of June 2023.
• The funding ratio increased from 145.8 per cent at the end of June 2023 to 146.4 per cent. • Total assets were £1,407.5 billion and total liabilities were £961.4 billion. • There were 458 schemes in deficit and 4,673 schemes in surplus. • The deficit of the schemes in deficit at the end of July 2023 was £2.2 billion, down from £2.3 billion at the end of June 2023. Shalin Bhagwan, newly appointed PPF Chief Actuary said: “Despite a softening of inflation during July, market interest rates were broadly unchanged, which has resulted in little movement in estimated scheme liabilities this month. Meanwhile, optimism that developed economies would avoid recession grew and growth-sensitive assets like equities saw strong returns, leading to an improvement in estimated scheme assets. As a result of these developments, the momentum driving improved funding levels over the past few months has been maintained, with the funding ratio increasing by 0.6 percentage points to 146.4%.”
View the August update and see the supporting data on the 7800 Index for 31 July 2023 here: The PPF 7800 index | Pension Protection Fund. |
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