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20 Years for the PPF to be financially self-sufficient

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.”


Wheat allergy

ith some of the recent doom-mongering headlines about rising food prices, you could be forgiven for assuming we are heading for an era of Zimbabwean-style inflation or Soviet-era shortages. Are we likely to start seeing hordes of people standing endlessly in queues around Netto, waiting to spend the week’s housekeeping on a loaf of stale […]

Unviable Invest & Give fund to be axed

Invest & Give, an investment fund that supports The Prince’s Trust, is winding up after failing to attract enough assets to make it viable. The multi-manager fund, run by John Husselbee at North Investment Partners, launched last year and had the backing of 12 UK fund groups. The plan was to donate 0.6 per cent […]


‘Switch sellers are failing to assess public’s needs’

Annuity Direct is calling for an FSA investigation into the sale of annuities, claiming that the majority of providers that sell direct to consumers are breaching switching rules. Chief executive Bob Bullivant says most providers fail to conduct proper research into clients’ existing pension schemes and their entitlements when selling an annuity. He says providers […]


Godfrey Bloom

The Ukip MEP for Yorkshire is rocking the boat in London and Brussels to get a fair deal for financial services and a prime target is the FSA which he says is ’treating IFAs like criminals’ Interview by Lee Jones

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]


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