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.
This month there has been an update in the way the PPF 7800 Index is calculated.
We are moving to the new Purple Book 2021 dataset, re-stating the funding position from March 2021 to October 2021 to reflect the new data. The impact as at 31 October 2021 is an increase in the funding ratio of 0.9 percentage points (see note 7 on page 8).
For more information on the impact of the change on the PPF 7800 Index, please see note 1 on page 7. All the charts and tables presented in this publication have been revised to reflect the changes described above.
Highlights
• The aggregate surplus of the 5,215 schemes in the PPF 7800 Index is estimated to have decreased over the month to £81.4 billion at the end of November 2021, from a surplus of £114.5 billion at the end of October 2021.
• The funding ratio decreased from 106.8 per cent at the end of October 2021 to 104.6 per cent.
• Total assets were £1,842.7 billion and total liabilities were £1,761.3 billion.
• There were 2,403 schemes in deficit and 2,812 schemes in surplus.
• The aggregate deficit of the schemes in deficit at the end of November 2021 was £125.9 billion, up from £103.4 billion at the end of October 2021.
Lisa McCrory, PPF’s Chief Finance Officer and Chief Actuary, said: “We’ve used the dataset from our newly launched 2021 Purple Book to calculate this month’s 7800 Index. The aggregate surplus of the 5,215 schemes we protect continued to worsen, reducing from £114.5bn last month to £81.4bn. With almost half of the schemes now in deficit the aggregate deficit increased by £22.5bn over the month to £125.9bn. This worsening in scheme funding is due primarily to recent decreases in bond yields and reminds us how market volatility can impact scheme funding levels.”
View the December update and see the supporting data on the 7800 Index for 30 November here
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