A scheme’s 179 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 of the 5,422 schemes in the PPF 7800 Index is estimated to have increased to £135.9 billion at the end of March 2020, from £124.6 billion at the end of February 2020.
• The funding ratio decreased from 93.2 per cent at the end of February 2020 to 92.5 per cent.
• Total assets were £1,680.5 billion and total liabilities were £1,816.4 billion.
• There were 3,606 schemes in deficit and 1,816 schemes in surplus.
• The deficit of the schemes in deficit at the end of March 2020 was £254.1 billion, up from £244.8 billion at the end of February 2020.
A spokesperson for the Pension Protection Fund said: “This month the PPF 7800 Index dipped, with the funding level decreasing by 0.7 percentage points to 92.5 per cent at the end of March 2020 compared with 93.2 per cent at the end of February 2020. The aggregate funding position of the 5,422 schemes stood at a deficit of £135.9 billion at the end of March 2020, compared with a deficit of £124.6 billion at the end of February 2020.
“The drop in schemes’ funding position over the month was caused by a decrease in equity prices, which contributed to schemes’ asset values decreasing by around 2.3 per cent. This was offset to an extent by a decrease in liability values of around 1.6 per cent due to an increase in index-linked bond yields.”
For a more in-depth look at the monthly changes to our data please go to: https://ppf.co.uk/sites/default/files/file-2020-04/ppf_7800_data_for_website_up_to_march_20.pdf
To view the full update: https://ppf.co.uk/sites/default/files/file-2020-04/ppf_7800_at_31_march_2020_for_april_update.pdf
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