The Pension Protection Fund (PPF) has today published its Strategic Plan 2022 – 2025, setting out its vision for the next three years, and building on the strong foundations already established.
It also confirms the Fund’s four new strategic priorities: meeting new challenges with brilliant service; excellence in asset and liability management; making a difference; and transforming their ways of working using enhanced technology.
Oliver Morley, Chief Executive of the PPF said: “Our strong performance against our 2019-22 strategic priorities, despite the challenges of the pandemic, has established a strong foundation for us to now build on. Our unique position allows us to continually look for new ways to innovate and exemplify best practice in pensions, asset management and customer service.
“Over the course of the next three years, we’ll continue to invest in, and improve, services to our members and levy payers so we can sustainably deliver high levels of satisfaction and remain as efficient as possible."
Key to delivering for its members in this next phase will be the successful implementation of the PPF’s amended compensation regime following the recent Hampshire and Hughes court rulings. Effectively progressing a larger number of applications to the Fraud Compensation Fund, established to pay compensation to pension schemes whose assets have been impacted by dishonesty, is another significant priority set out in the new Strategic Plan.
Oliver Morley continued: “We know our members have gone through a lot before they come to us, and so we’re never complacent about the help we offer them. With this in mind, we understand the recent court rulings have caused uncertainty for some around what they’re entitled to. Our priority is to ensure all our members are receiving the right compensation and are clear on what to expect both now and in the future.”
Excellence in asset and liability management
The PPF has made significant progress in recent years towards its overall funding target. It currently stands in a robust financial position, but the external environment could change and risks to its financial resilience remain. The PPF is currently conducting a planned review of its Funding Strategy. In this new Strategic Plan, it has committed to complete this review and publish the results this year (in 2022).
Making a difference
The impact the PPF makes to its members and future members lives is clear, and the Fund has further strengthened its commitment to making a difference in everything it does. To this end it will develop and publish a holistic sustainability strategy, building on its market-leading approach to responsible investment and the significant progress already achieved in its strategic response to climate change and diversity and inclusion. As a recent signatory to the FRC’s UK Stewardship Code 2020, its commitment is clear. Driving change through thorough data driven analysis and solutions, managing risk, setting new standards and sharing their learnings to help others, are core to the PPF’s beliefs and values. Exploring more opportunities for sustainable investment in asset classes such as forestry and infrastructure will be a priority, as well as managing its own environmental impact, and that of its suppliers.
The PPF has also made strong progress in embedding a diverse and inclusive culture and is on track to meet its ambitious targets as set out in its 2020 diversity and inclusion strategy. They have also committed to using their influence and industry connections to work with others and demonstrate that meaningful change is possible.
Transforming ways of working
The new Strategic Plan commits to the continued evolution of its technology and digital solutions to improve the experience for its members, levy payers, and employees while maximising efficiency and allowing its people to focus on adding value. The Fund’s commitment to delivering best practice in information, data and cyber security is resolute to ensure all data is secure and protected at all times.
Oliver Morley concluded: “Our teams are excited to embrace the challenges and goals of the new Plan to deliver sustainable change and growth for the future while increasing our effectiveness and efficiency. Our strengthened financial position ensures we’re well placed to withstand higher levels of insolvency claims without risking the security of our members benefits. At the same time, we’ll continue to look for new ways to support our levy payers.
“We want to hold ourselves accountable for delivering on our new strategic priorities and we’ll transparently measure and report on their progress each year in our Annual Report and Accounts.”