The Pension Protection Fund (PPF) paid out £1bn in compensation to members last year as strong asset performance sent both its reserves and its probability of success skyrocketing.
In its 2020/21 annual report and accounts, published on Monday (18 October), the compensation scheme reported a 13.9 percentage point increase in its funding position, which hit 127.3%, as reserves also soared to £9bn. The payment figure is the highest ever recorded by the PPF and reflects its growing membership. The 2020/21 improvement more than offsets the Covid-induced weakening of the PPF's position last year, when reserves were down by £1bn at £5.1bn, and the funding level dropped from 118.6% to 113.4%. In the year to 30 March, returns on growth assets hit 17.6%, raising £3.7b...
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