The Pension Fund Reveals its Long Term Plans

At the beginning of this century, many pensioners were left devastated and faced the collapse of their pension scheme.

The fund was created five years ago with the aim to provide compensation to the members of pension schemes in the event of their employer becoming insolvent and unable to meet its obligations.

The Fund is a statutory organisation, funded through annual levies, which are compulsory and charged on all qualified schemes.

For the first time, Fund has published its long-term plans and its funding strategy.

The PPF revealed ambitious objectives to become self-sufficient by 2030 and eliminate its exposure to inflation, interest rates, and market risks and protect themselves against longevity.

The PPF’s target will be to achieve funding levels of 110 percent of liability in 20 years’ time and according to their probability calculations, they have an 82,8% chance to do it.

The fund will continue to rely on the annul levy it will collect and also on investment returns.

It is worth noting that by March 2010, PPF managed assets in excess of £4 million and paid £156 million in compensation.