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 £458.3 billion at the end of April 2024, from a surplus of £455.5 billion at the end of March 2024.
• The funding ratio increased from 146.5 per cent at the end of March 2024 to 148.8 per cent.
• Total assets were £1,398.0 billion and total liabilities were £939.7 billion.
• There were 505 schemes in deficit and 4,545 schemes in surplus.
• The deficit of the schemes in deficit at the end of April 2024 was £3.8 billion, up from £3.4 billion at the end of March 2024.
Shalin Bhagwan, PPF Chief Actuary said: “In the last month, we’ve seen the estimated aggregate surplus of eligible defined benefit pension schemes continue to rise – with a £2.8 billion increase over the course of April to £458.3 billion, while the funding ratio increased by 2.3 per cent to 148.8 per cent. These changes resulted from a 4 per cent fall in liability values – largely driven by a sharp rise in government bond yields – which offset a 2.5 per cent fall in assets held across the eligible universe.
“However, despite the overall positive movements, there was a slight increase in the deficit of schemes in deficit, which grew to £3.8 billion. This reflects the higher proportion of assets invested in classes which saw the largest reductions in value over the month, in particular bonds.”
View the May update and see the supporting data on the 7800 Index for 30 April 2024 here: The PPF 7800 index | Pension Protection Fund.
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