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The Actuary The magazine of the Institute & Faculty of Actuaries

PPF 7800 funding position up to 99.2%

The aggregate deficit of schemes monitored by the Pension Protection Fund (PPF) fell from £13.5bn, to £8.3bn in June.

The updated PPF 7800 index - which comprises 6,533 schemes - showed the funding ratio had improved from 98.7% to 99.2% from the end of May.

Total assets stood at £1,004bn and total liabilities were £1,012.3bn with 4,245 schemes in deficit and 2,288 schemes in surplus.

The PPF said the slight decrease in assets in June was mainly due to declining UK equities and falling bond markets, with some offset from rising overseas equities.

Liabilities also fell by 0.6% due primarily to the rise in gilt yields.

Funding positions and liabilities were calculated on a section 179 basis which reflects the premium that would need to be paid for an insurance company to take on the payment of PPF levels of compensation.

The deficit was down £30.2bn from last June’s figure of £38.5bn and the funding level was up 3.3 percentage points on this time last year.

The PPF said the year-on-year comparison was affected by changes in assumptions for s179 valuation which had raised liabilities by 3.6% and reduced the aggregate balance by £34.9bn.

[Source: Professional Pensions”