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 £455.5 billion at the end of March 2024, from a surplus of £442.3 billion at the end of February 2024.
The funding ratio increased from 146.1 per cent at the end of February 2024 to 146.5 per cent.
Total assets were £1,434.3 billion and total liabilities were £978.8 billion.
There were 497 schemes in deficit and 4,553 schemes in surplus.
The deficit of the schemes in deficit at the end of March 2024 was £3.4 billion, down from £3.9 billion at the end of February 2024
Shalin Bhagwan, PPF Chief Actuary said: “The positive movements that we reported in March’s PPF 7800 index update have carried through into this month, with the estimated aggregate surplus of eligible schemes increasing by £13.2 billion to £455.5 billion and the deficit of schemes in deficit falling to £3.4 billion.
"These changes come despite a 2.1 per cent increase in the liabilities of schemes in the DB universe, due to a fall in bond yields, following indications from central banks that they are likely to reduce policy rates in the coming months. This was due to the 2.4 per cent growth in assets held by schemes outpacing the rise in liabilities, with equities performing well over the past month – which will have particularly benefitted schemes investing in return seeking assets. As a result of these changes, we’re reporting a marginal increase in the funding ratio of 0.4 per cent through March to 146.5 per cent."
View the April update and see the supporting data on the 7800 Index for 31 March 2024 here: The PPF 7800 index | Pension Protection Fund.
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