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 5,050 schemes in the PPF 7800 Index is estimated to have increased over the month to £475.5 billion at the end of July 2024, from a surplus of £473.6 billion at the end of June 2024.
• The funding ratio decreased from 149.4 per cent at the end of June 2024 to 148.5 per cent.
• Total assets were £1,455.9 billion and total liabilities were £980.4 billion.
• There were 461 schemes in deficit and 4,589 schemes in surplus.
• The deficit of the schemes in deficit at the end of July 2024 was £3.4 billion, down from £3.5 billion at the end of June 2024.
Shalin Bhagwan, PPF Chief Actuary said: “This month, both liabilities and assets rose as softening economic data raised confidence that the US Federal Reserve and Bank of England would soon follow the European Central Bank in cutting policy rates, causing risk-free yields to fall. However, the proportionate rise in assets was outpaced by the proportionate rise in total liabilities, leading to a small decrease in the estimated funding ratio from 149.4 per cent at the end of June 2024 to 148.5 per cent.
“Despite this, the aggregate surplus of eligible DB schemes is estimated to have increased over the month to £475.5 billion at the end of July 2024, from a surplus of £473.6 billion at the end of June 2024, while the deficit of the schemes in deficit is estimated to have fallen by £100 million to £3.4 billion.”
View the August update and see the supporting data on the 7800 Index for 31 July 2024 here: The PPF 7800 index | Pension Protection Fund.
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