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PPF confident funding strategy is on track


Save BHS campaigners light up London landmarks as retailer administration rumbles on,Campaigners trying to rescue iconic high street retailer BHS turned some of London's landmarks red, white and blue last night, with a city-wide campaign to find a saviour for the chain. Marble Arch, Wellington Arch, Blackfriars Bridge and BHS' Marylebone head office were among the buildings lit up by campaigners with the message #SaveBHS last night. The retailer entered administration last month, putting up to 11,000 jobs at risk, as financial woes pile up. Administrators Duff & Phelps are thought to have had at least 50 expressions of interest in the business, including from Mike Ashley's Sports Direct. Under former owner Sir Philip Green, BHS built up a £571m pension deficit, which is now the subject of an investigation by the Work and Pensions select committee. © Nigel Howard / Evening Standard / eyevine Contact eyevine for more information about using this image: T: +44 (0) 20 8709 8709 E: info@eyevine.com http://www.eyevine.com

The pensions lifeboat fund says it’s in a “robust position” to face Brexit-associated uncertainties whilst the funding gap in company pensions widens.

The Pension Safety Fund can pay compensation to Contributors of company pension schemes when their employer fails, with around 11m Individuals probably eligible for the protection net.

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However considerations have grown that force will pile on to the rescue scheme as poorly funded schemes see deficits balloon because of market uncertainty, prompted by means of Brexit.

In its annual document revealed on Thursday, the PPF stated at this stage it was unclear what the “full consequences” of the united kingdom leaving the european Union could be.

“We Are very aware of the hazards we face in defending a universe with an combination deficit on the finish of March 2016 of £302bn,” said Alan Rubenstein, chief govt of the PPF.

“But we stay assured that our funding technique is on target and that We Are in a robust place to face uncertainties.”

The feedback came as the PPF reported an improvement in its funding position within the year to the top of March, with reserves rising to £Four.1bn from £3.6bn the yr sooner than. Property under management were up from £22.6bn to £23.4bn.

Its funding ratio — or the level to which Property can duvet compensation to be paid — nudged up to 116 per cent from One Hundred Fifteen per cent the yr earlier than.

The PPF stated its modelling suggested that the chance of it attaining self-sufficiency by way of 2030, when it might now not be funded with the aid of an agency levy, had increased from 88 to 93 per cent.

“We had a a hit yr regardless of the challenging economic backdrop,” stated Andy McKinnon, the PPF’s chief Monetary officer.

“Participants of defined advantage pension schemes within the UK can also be reassured that we can Protect their Financial future will have to their corporation fail.”

Over the yr, 47 new schemes had been brought into the PPF, together with the BHS pension scheme, which started to be absorbed into the lifeboat past this yr. This pushed up the worth of latest claims on the fund by 48 per cent to £476m.

Over the 12 months, the PPF paid £616m in compensation with 10,005 new Contributors entering the lifeboat fund, carry a total of 225,500 deferred and pensioner Contributors.

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