Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • October 2012
10

Pensions lifeboat 'on track for self-sufficiency'

Open-access content 22nd October 2012

The Pension Protection Fund improved its funding position last year despite a ‘significant deterioration’ in the deficits of many other defined benefit pension schemes.

2

In its Annual report and accounts 2011/12, published today, the lifeboat fund revealed its surplus increased by almost £391m on the previous year, reaching £1.07bn. This surplus was driven by 'excellent' investment returns of 25%, more than sufficient to offset the rise in its liabilities.

The fund, which takes control of pension schemes when the companies behind them run into financial difficulties, saw its membership increase by 53,463 people over the course of the year to over 128,000. At the end of March, it was managing £11.1bn of assets, £4.7bn more than in 2010/11.

PPF chair Lady Barbara Judge said: 'Our overall performance should give our members continued confidence in our commitment to provide their retirement compensation for as long as they need it.

'We cannot rest on our laurels, however. Already this year, we have seen claims on the PPF of more than £700m - and a significant deterioration in the deficits of many of the other pension schemes that we protect. We are determined, however, that the PPF should remain strong enough to weather these storms.'

According to a separate Funding strategy review, also published today, the fund's financial performance means it is still on track to achieve self-sufficiency by 2030. This is defined as having a level of assets 10% in excess of its liabilities, with the levy currently paid by pension schemes to help support the PPF having 'ceased to be significant'.

At the end of March, the PPF was 84% confident of meeting this target. This compares to 87% confidence it had a year earlier. Chief executive Alan Rubenstein said that while it was still 'on course' to achieve self-sufficiency within the 2030 timeframe, the fund was 'ever vigilant' about the situation worsening.

'Foremost in our minds has been the continuing global financial crisis and the adverse effect it has had on the funding positions of UK pension schemes,' he explained. 'Increased claims on the PPF have already meant that our own funding level has fallen from 106% in March 2012 to about 102% and that levies are likely to rise in the short-term.'

This article appeared in our October 2012 issue of The Actuary.
Click here to view this issue
Filed in:
10
Topics:
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Reinsurance Pricing Lead

England, London
£40000 - £75000 per annum
Reference
118905

Senior Pricing Actuary

London, England
£60000 - £110000 per annum
Reference
118904

Pricing Actuary (Casualty)

England, London
£60000 - £80000 per annum
Reference
118903
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200