Established a baseline of its own environmental impact as a business and published targets to reduce impacts over the period to 2025 (reflecting best practice standards).
85 per cent of PPF staff agreed that it is a diverse employer that supports inclusion.
The Pension Protection Fund has published its 2022-23 Annual Report and Accounts highlighting significant progress against its 2022-25 Strategic Plan.
The Fund – which protects 9.6 million members in defined benefit (DB) schemes – achieved its key objectives over the last year, including strengthening its financial position, maintaining high customer satisfaction levels, completing payments for the majority of PPF and FAS members needing an uplift as a result of the Hampshire judgement or uncapping, and continuing to drive sustainability through its responsible investment approach.
Oliver Morley, PPF Chief Executive Officer, said: “As we mark the end of another eventful year, I am pleased to report that we’ve been successful in achieving our objectives for 2022/23. Despite all the challenges we’ve seen over the year, including market volatility, we’ve continued to deliver on our mission, move forward with our Strategic Plan, and meet our goals.”
The PPF’s strong investment performance over the past financial year has played a key role in strengthening its financial position, increasing its funding ratio to 156 per cent and its reserves to £12bn. Despite a challenging economic backdrop, the Fund delivered a healthy return on its growth assets over the year, above the benchmark used to measure performance against other funds.
The report also highlights the outcome of its Funding Review carried out last year which recognised that the PPF’s financial position, coupled with changes in its risk profile, meant it was moving into a new ‘Maturing’ phase of the funding journey. As a result, the Fund began the process of transitioning to a lower levy. Other proposed changes to the PPF’s future approach are reported in the DWP’s review of the PPF, which included recommendations for the PPF to share its good practice more widely, and for the DWP and the PPF to consider whether our capabilities and skills could be used in other ways for public benefit.
Oliver Morley added: “Our funding review gave us assurance that we could lower the levy without risking the security of our members’ benefits. Last year we reduced the levy significantly, and as we maintain our financial resilience, we expect our reliance on levy to further reduce. We trust our strong financial position and proven track record performing our role protecting DB schemes continues to give confidence to our current and future members, and levy payers. Government is currently seeking views on how DB schemes assets could be used to deliver good member outcomes whilst also supporting the wider economy. Our past experience in consolidating more than 2,000 schemes, and significant success in generating returns through growth assets whilst improving member security, has demonstrated that this is achievable, and we are willing and ready to play our part.”
|
