Pension Protection Fund to unveil new funding plan
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The Pension Protection Fund is expected to unveil plans today that will see it generate enough funds to pay all future benefits by 2030.
According to the Financial Times, the PPF says it has an 83 per cent chance of achieving its target of holding 110 per cent of required cash by 2030.
The PPF was established in 2005 after a number of pension schemes collapsed. It props up the pension schemes of insolvent employers and is funded by employers who pay a levy based on the risk of their scheme defaulting.
In November the Pension Protection Fund announced that its deficit had more than doubled from £517m in 2007/08 to £1.23bn in 2008/09, casting further doubt over the sustainability of the lifeboat.
PPF chief executive Alan Rubenstein says: “There is the idea that one day there will only be one or two large schemes in the UK and they will have to pay the levy for everybody. As the levy shrinks, we want to demonstrate that we have a plan in place to be able to pay benefits to all claimants.”
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