The Pension Protection Fund is aiming to be financially self-sufficient by 2030 and wants to have eliminated all exposure to interest rate, inflation and other market risks.
The lifeboat published its long-term funding strategy last week in a bid to reassure members of its sustainability after announcing in Nov-ember that its deficit had more than doubled from £517m in 2007/08 to £1.23bn for 2008/09.
The PPF also plans to have built up a reserve or acquired hedging instruments to protect itself against future claims and increasing longevity within 20 years.
It says it has an 83 per cent chance of achieving its target.
The PPF is investing its annual levy, paid by the UK’s final-salary schemes, alongside the assets of the pension schemes transferred into the PPF.
But it warns that the risk of investments failing to reach their target returns could pose problems to meeting its funding target.
Chief executive Alan Rubenstein says: “We think it is important that we expose our plans so we can show how we intend to ensure we have the financial resources needed to pay existing levels of compensation to current and future members of the PPF and become self-sufficient by the time the level of risk to the PPF from future insolvencies has reduced substantially.”