The collapse of several long-established employers with large defined benefit (DB) schemes could vastly overtake calculations for a £20bn hit to the Pension Protection Fund (PPF), warns Lane Clark & Peacock (LCP).
The consultancy's latest analysis on the impact of the coronavirus pandemic on the lifeboat fund - released on Thursday (27 August) - examines £10bn and £20bn scenarios for potential hits to the PPF. LCP said the PPF is likely to face a ‘multi-billion pound hit' as a direct result of insolvencies in the wake of the Covid-19 crisis, but adds that the flexibilities built into its funding structure should be "enough to withstand all but the deepest crisis". Extreme measures, such as cutting PPF benefits across the board, would only be necessary if several of the nation's most-established...
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