The Pension Protection Fund (PPF) has today reported a robust performance as it published its 2017/18 Annual Report and Accounts.
Despite taking on pension schemes from employers including Carillion, Toys R Us and Hoover, with deficits totalling £1.2 billion - the highest total value to date, our funding position has strengthened.
We’ve reported a continued growth in our reserves to £6.7 billion and an increase in our funding ratio to 122.8 per cent. We’ve also reported a strong investment performance ahead of target with a 2.8 per cent investment contribution despite significant market volatility.
Oliver Morley, Chief Executive of the PPF, said: ‘‘The PPF remains resilient within a volatile economic landscape, and continues to provide valuable protection for 11 million pension scheme members. This year, more than 60,000 people are better off because the PPF exists following insolvency events that affected their defined benefit pension.
“While we remain strong, we are not complacent. We remain focused on becoming more efficient and effective for our members and levy payers.’’
Despite the risks we face, our probability of success remains ahead of target at 91 per cent.
Andy McKinnon, Chief Financial Officer, commented: ‘‘Our success over the past year has come amid a backdrop of political, regulatory and economic uncertainty, so I am pleased to report that we have achieved such strong financial results.
‘‘However, there are significant risks in the pensions universe we protect. We continue to monitor these risks to ensure we can meet the needs of our members and our levy payers, and our performance over the past year reflects this’’.
Our annual report also highlights innovative developments in our services to members including the launch of ‘Quote and Retire’ (formerly 'Retire Now'), a digital tool that allows members to retire online.
Sara Protheroe, Chief Customer Officer, said: ‘‘As our member base continues to grow, we’ll be using innovative technologies to improve our service to members so they have a greater choice over how they interact with us. Having received the Institute of Customer Service’s ServiceMark last year, we are proud that the PPF continues to demonstrate such an unwavering commitment to its members’’.