Financial Assistance Scheme administration to be brought in-house
The Pension Protection Fund (PPF) has today (Thursday) published its Strategic Plan 2017-2020. Setting out its vision for the next three years, the plan outlines how the PPF intends to achieve its strategic objectives, which focus on funding, customer service and risk.
The document was prepared for publication in April but this was delayed as a result of purdah rules for public bodies in the run-up to the General Election.
In the Strategic Plan the PPF has announced its intention to bring Financial Assistance Scheme (FAS) member services in-house over the next three years, having successfully completed a project to insource PPF member services in 2015. This follows work with DWP to assess the best approach to FAS administration in the long term.
The plan sets out the PPF’s financial projections for the next three years, including an estimated £32 billion in assets under management by 2020. It also confirms that the organisation has successfully completed the first two phases of its project to insource part of its investment management, and plans to insource sections of its private and public market credit portfolio over the next three years. The PPF will also examine the rationale for insourcing passive currency hedging.
The PPF will continue to evolve its insolvency risk model, which is used to calculate the pension protection levy, to ensure the levy is as reflective of risk as possible. It will implement changes for the third levy triennium and will consult on the rules for the fourth levy triennium within the next three years.
Arnold Wagner, Chairman, PPF said: “The PPF protects 11 million members of defined benefit schemes. The pensions world before we were established, where members might be left with nothing, is now unthinkable. A culture of continual improvement has helped us to evolve into a sophisticated, well-run organisation which strives to provide value for money for levy payers and valuable protection for members.”
Alan Rubenstein, Chief Executive, PPF said: “Our operating environment contains many uncertainties. We have a good understanding of our risks and mitigate them where they are within our control. However, the future performance of the UK and global economies, and the volatile funding levels among the schemes we protect, pose particular risks. Nevertheless, we are confident that our funding strategy puts us in a good position to face the future.”
Sara Protheroe, Chief Customer Officer, PPF said: “We put our members at the heart of everything we do. Bringing PPF member services in-house has brought us closer to our members and given us greater control and flexibility. We are proud to have embedded an award-winning customer service function and we want to provide FAS members with the same excellent service. As well as ensuring this consistency, insourcing will ensure that FAS is operated as efficiently as possible.”
Notes to editors
The Pension Protection Fund protects millions of people throughout the United Kingdom who belong to defined benefit pension schemes. If their employers go bust, and their pension schemes cannot afford to pay what they promised, the PPF will pay compensation for their lost pensions. Over a hundred thousand people now receive compensation from the PPF and hundreds of thousands more will do so in the future. The PPF is a public corporation, set up by the Pensions Act 2004, and is run by an independent Board.
For further press information contact:
The PPF Press Office
020 7566 9775