* PPF reports £678m surplus, an increase of £248m from previous year
* Funding update also published - PPF still on track to meet target
* Reports investment returns of 4.7 per cent, equivalent to £214 million
* A total of almost 75,000 people have now transferred into the PPF
Figures released by the Pension Protection Fund (PPF) reveal that at the end of March 2011 it had a £678 million surplus over liabilities, an increase of £248 million from the previous year. In its annual report published today (Monday), the PPF also reported that, at the end of the same period, it was 105.1 per cent funded compared with 103.3 per cent last year.
These figures mean that the probability of the PPF achieving financial self-sufficiency by its target date of 2030 increased from 83 per cent at 31 March 2010 to 87 per cent at 31 March 2011.
PPF Chairman, Lady Barbara Judge, said: "We have seen excellent progress during what has been a difficult year economically. While our results are encouraging in the short-term, they must also be seen in the context of our long-term objective to become financially self-sufficient by 2030 - and they confirm that we remain on track to achieve that objective.
"While we may have ridden the storm well so far, we cannot afford to be complacent and we remain vigilant to any risks to our future funding. I believe this gives the people who receive our compensation continued confidence in our ability to pay that compensation for as long as they need it."
More details about the PPF's long-term funding position can be found in the PPF Funding Strategy Update which has been published today alongside the annual report. Chief Executive, Alan Rubenstein, said: "The period since the end of March 2011 has seen difficult times in the financial markets and this has affected our funding, although we have fared better than other pension schemes because of the nature of our investment strategy.
"This highlights the importance of continually reviewing our funding strategy. The update we have published today is the first formal review we have carried out since we launched the strategy in 2010 and reflects new factors which may affect its chances of success.
"After thorough analysis, we report that, despite these new factors and the challenging economic environment, our ultimate target remains the same. We believe this will give all our stakeholders the confidence that we can meet our long-term funding aims."
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