The Strategic Plan outlines how the PPF will continue to protect its members amid a volatile market whilst setting new standards. It also confirms the PPF’s five strategic priorities:
- Sustainable funding in volatile times
- Built for innovation
- Brilliant service for members and schemes
- The best of financial and public services culture
- Clear value for money
Oliver Morley, Chief Executive of the PPF said: “Over the course of this Strategic Plan, we will be setting standards for innovation, assurance and service at the PPF. We will do this by adopting innovative approaches to our business operations including moving to cloud based technology and the development of digital technologies so we can respond quickly and efficiently to the environment in which we operate.”
Over the next three years, the PPF will continue to develop innovative digital services and explore future technical developments that will not only allow their members and levy payers to use the channels that meet their needs but will allow the PPF to become agile, more efficient, productive and cost effective as their membership grows.
The PPF will remain prudent and maintain its current funding strategy and low risk investment approach over the course of the Strategic Plan to ensure there will be sufficient revenue and reserves to take on large schemes with significant deficits without risk to members.
Oliver Morley continued: “We are the final backstop for our members and as such, we want to provide assurance to our members that we will be here for as long as they need us.”
Despite market volatility, the PPF remains robust and on track to meet its long-term funding target to be 110 per cent funded by the time it reaches its funding horizon, currently assessed to be in 2030. The levy estimate for 2019/20 was reduced to £500m and the PPF’s modelling implies an overall downward trajectory for the levy in the long term.
Oliver Morley said: “Over the course of this plan, we will continue to work closely with all our levy payers to develop services that will make it easier for them to comply with their levy obligations which are critical to our members and the members of their schemes. We also want to continue to improve the services we provide our members and want to offer our members the digital services they want which coincide and cooperate with our existing award winning services.”
Over the course of the plan, the PPF will evolve its services to members across both traditional and digital channels. It will increase the use of member communications via its existing social media channels and will introduce new online services including web chat and co-browsing to encourage members to engage with the PPF from their preferred device. The PPF expects that by March 2022, 70 per cent of member transactions will be undertaken online.
The PPF will also draw on the best of the financial and public services sectors, including the standards by which they are held to account, and will attract, recruit and retain a diverse employee population.
Supporting the plan, the PPF has published for the first time its Business Plan as a separate document identifying the fund’s key milestones and planned activities for the next 12 months.
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. Tens of thousands of 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.
- The Pension Protection Fund is in a healthy financial position with more than £30bn in assets under management.
- Since the PPF was first set up in 2005 it has taken on more than 940 schemes and paid over £3.7 billion in compensation. £725m was paid out in 2017/18.
- In the past financial year, the PPF has seen its largest scheme to date enter PPF assessment. This is the Kodak Pension Plan (No.2) which has a deficit of £1.5b.
- Our last published annual report and accounts showed an increase in our reserves of £0.7 billion (from £6.1bn to £6.8bn), as a result of our strong investment performance. Building a reserve helps to protect the long-term sustainability of the fund, allowing us to meet future large claims such as the Kodak Pension Plan (no.2) and Carillion.
- In the last financial year (2018/19) there has been more than 20,100 registrations from PPF and FAS members to use the PPF’s digital services.
- Our member satisfaction levels for the past 11 months (April 2018 – February 2019) was at 97.2 per cent. All members who call our member services team or access our member websites are surveyed for satisfaction.
- In February 2019, the PPF launched an SME levy forum.
For further press information contact:
The PPF Press Office
Tel: 020 8406 2107
Email: [email protected]