Smooth sailing for the pensions lifeboat? The PPF’s annual report in numbers

The gradual economic recovery is welcome news for the Pension Protection Fund, with buoyant equity markets and stronger companies outweighing some losses in its liability-driven investment strategy. 

The organisation's annual report released today showed an increase in the likelihood of the pensions lifeboat of being self-sufficient by 2030 to 90 per cent in the year to March 31 2014, from 87 per cent in 2013.

PPF chair Lady Barbara Judge and CEO Alan Rubenstein said the increase in funding level was due to a “new” low level of claims and fewer companies becoming insolvent.

Judge said the self-sufficiency metric was slightly higher than target. “One of the reasons is because there have been less bankruptcies this year, and pension funds are better funded,” she said, adding: “The pensions lifeboat continues to sail smoothly on towards its goal.”

There was also an increase in funding level to 112.5 per cent from 109.6 per cent. “This shows the investment strategy is working… we were up 2.9 per cent above our benchmark,” said Judge. “Also, the economy is doing better.”

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