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

HMRC updates on information sharing for IHT on pensions

HMRC updates on information sharing for IHT on pensions

Second technical note

Alex Levy
clock 01 September 2026 • 2 min read
Pension first or last? What the numbers really tell us

Pension first or last? What the numbers really tell us

'Focusing solely on reducing the pension before death can increase lifetime tax'

Joshua Croft
clock 28 August 2026 • 4 min read
IHT on pensions: New thinking on taking income in retirement?

IHT on pensions: New thinking on taking income in retirement?

‘This has undoubtedly had a huge impact on planning for many clients’

Lisa Webster
clock 26 August 2026 • 3 min read