Skip to main content
The Pension Protection Fund (PPF) has published a consultation document proposing changes to the actuarial assumptions used in s179 and s143 valuations.

By law, the PPF has to set its valuation assumptions to reflect pricing in the bulk annuity market.

• Section 143 valuations are used to determine whether a scheme should enter the PPF following an insolvency event.

• Section 179 valuations are used to calculate scheme underfunding to determine the risk-based pension protection levy that a scheme should pay.
The most significant proposed changes are:

• to use separate discount rates for pensioners and non-pensioners post retirement;
• to use yield indices that have durations that better match average liability durations, including the introduction of a new index-linked gilt yield; and
• to update the mortality assumptions.

There would also be consequential changes to valuations carried out under sections 152, 156 and 158.

Please submit any responses via e-mail to [email protected]


Notes to Editors

The Pension Protection Fund:
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.

For further press information contact:

PPF Press Office
020 7566 9775
[email protected]