PPF sets out challenges for next three years

- PPF publishes three year management plan
- Sets out challenges for next three years plus key activities for 2008-2009
- Strengthening financial resilience a priority
- PPF membership could be similar to the largest pension schemes by 2012

The Pension Protection Fund (PPF) today (Wednesday) set out its plans for meeting the challenges of the next three years and beyond.

It published its management plan for the three years between 2008-2009 and 2010-2011 - as well as a more detailed business plan which identifies the activities it will carry out during 2008-2009. It also flagged that it will review its strategy to 2012 later in the year.

PPF Chief Executive, Partha Dasgupta, said: “Following our third anniversary, the PPF is now firmly part of the pensions landscape and we are carrying out all the tasks given us by the Pensions Act 2004. But we recognise we have still more to do and the next three years will undoubtedly be as challenging as the last three.

“Strengthening our financial resilience will remain an important priority for us, particularly having seen the recent marked volatility in the financial markets, with the resulting knock-on effect on pension scheme funding. Also, by 2012, PPF membership could be the same as the largest final salary pension schemes in the UK and we could have assets of more than £15 billion.”

Main areas of work for the PPF include:

- consulting on developing the pension protection levy so that it better represents the long-term risk that final salary pension schemes pose to the PPF
- developing a long-term investment strategy to ensure it remains appropriate as levies are paid and more scheme assets transfer to the PPF
- introducing new technologies to streamline the PPF’s work, and
- strengthening relationships with all those interested in the work of the PPF.

Added Partha Dasgupta: “We clearly have a lot to do during the next three years and I look forward to working with all our stakeholders to deliver on what are ambitious plans and ensure we continue to play our part in restoring confidence in defined benefit pensions in the UK.”


ends

Notes to editors:

1.A factsheet, ‘Striking the Balance’, providing an overview of the management and business plans is available on the website at http://www.pensionprotectionfund.org.uk/index/publications.htm.

2.Copies of the document, Management Plan 2008-2009 to 2010-2011 (incorporating Business Plan 2008-2009), can also be found on the website at http://www.pensionprotectionfund.org.uk/index/publications.htm. Hard copies will be available shortly, and can be requested by contacting 0208 867 3297.

3.The Pension Protection Fund was set up under the provisions of the Pensions Act 2004 in April 2005 and is classified as a public financial corporation. It has been established to pay compensation to members of eligible defined benefit and hybrid pension schemes when there has been a qualifying insolvency event in relation to the employer, and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation.


For further press information contact:

Richard Hunt on 0208 633 5931/0789 4255561
Ana Moreno on 020 8633 4932/07961 957 480