PPF pays out £1bn as returns allow reserves to soar

Probability of success hits highest-ever level in bounce back after Covid chaos

James Phillips
clock • 3 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Pensions

Pensions gender gap: A low-profile injustice that deserves more attention

Pensions gender gap: A low-profile injustice that deserves more attention

'Pensions are one of the few financial products where time is the single biggest driver of outcome'

Jessica Cook
clock 24 August 2026 • 4 min read
Advisers place focus on retirement support as providers lack 'meaningful' engagement

Advisers place focus on retirement support as providers lack 'meaningful' engagement

People’s Pension poll shows 54% of IFAs say providers struggle to create ‘meaningful’ engagement

Martin Richmond
clock 19 August 2026 • 3 min read
Pensioner poverty has risen for more than a decade, warns LCP

Pensioner poverty has risen for more than a decade, warns LCP

Single and divorced pensioners most affected and should be focus for future policy

Alex Levy
clock 18 August 2026 • 4 min read