The Pension Protection Fund (PPF) has published its 2023/24 Annual Report and Accounts, highlighting its strong investment performance and continued customer service excellence.
The report shows the PPF has maintained its strong funding position. Despite an uncertain inflation and interest rate backdrop, investment returns helped its reserves grow from £12.1bn last year to £13.2bn. The PPF’s growth portfolio delivered a return of 7.2 per cent over the year. The Fund’s assets under management stood at £32.1 billion as at the end of March 2024. Robust funding enabled the PPF to continue to reduce its levy collection and confirm its lowest ever levy estimate of £100m for 2024/25.
The PPF – which protects 8.9 million members in defined benefit (DB) schemes – continued to deliver excellent service for its more than 400,000 PPF and FAS members, with 98 per cent of members saying they were satisfied or very satisfied with PPF service. It additionally concluded the complex implementation of calculations and, where possible, made payments to members due uplifts owing to the Hampshire judgment and removal of the PPF cap; and made notable progress assessing claims to the Fraud Compensation Fund (FCF), completing 21 cases, including the Norton Motorcycles scheme.
In line with its Sustainability Strategy, the report also highlights that the PPF met its stewardship target to demonstrate excellence in responsible investment, with 90 per cent of the Climate Watchlist companies in its investment portfolio making disclosures on emissions. As part of its Community Impact programme, PPF employees surpassed their target to spend 500 days volunteering in the community this year.
Kate Jones, Chair of the PPF, said: “In a year of change where the PPF has moved increasingly into the spotlight, I‘m pleased that we’ve continued to deliver for our existing members and levy payers. We’ve engaged productively with stakeholders over the past year and will continue to ensure that the voices of our members, levy payers, and DB members are heard – their interests remain at the forefront of our work.”
Michelle Ostermann, Chief Executive Officer of the PPF, who joined in April 2024, said: “I am very proud to have taken the reins at the PPF – a world-class and highly regarded institution – at such a pivotal time for the UK pensions industry. As we enter an exciting new chapter, I look forward to building on the PPF’s highly successful investment and member services capabilities.”
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