Fund Facts & figures
Learn more about the financial performance of the Fund and its membership statistics.
Fund valuation update
Every three years, the Trustee is required by law to undertake a formal valuation of the assets and liabilities of the Fund. The latest formal valuation completed by the Fund actuary for 31 March 2023 showed that funding levels continued to be strong, rising from 105% at the last formal valuation to 115% at the most recent.
You can read our member communication announcing the formal valuation results here.
We’ve also provided a Summary Funding Statement so you can see the Fund’s latest financial position. It’s our way of letting you know how the funding position’s changed since the last formal valuation. You can see the Summary Funding Statement here.
Because of the increase in Gilt yields, the overall value of the Fund’s assets has fallen. However, a decrease in long-term inflation means that the amount of money needed to meet the Fund’s commitments has decreased by a larger amount than the drop in the value of its assets, improving its overall funding position.
When investors lend money to the UK Government, they receive a Gilt. It’s an IOU, and the investor receives a fixed rate of interest for a defined number of years. At the end of the period, the Government pays back the money that was lent to them.
Gilts can be traded on financial markets, which is useful if an investor needs access to their IOU before it’s due to be paid back by the Government. The money the investor gets when selling the Gilt will depend on how attractive investors consider it to be.
Many Gilts issued over the decade to the end of 2021 paid a low rate of interest. When interest rates started rising in 2022, these Gilts became less attractive compared with newer ones that were paying a lot more interest.
This has caused the market value of older Gilts to fall.
It’s the Gilt’s rate of interest, divided by the price that was paid for the Gilt. The interest rate never changes from when it was issued.
Rising Gilt yields indicate that the price a new investor is prepared to pay for the Gilt is lower than the amount of money that was originally lent to the Government.
The Fund’s financials
The Fund’s latest report and financial statements to 31 March 2024 can be found here, but you can read a user-friendly summary right here in the newsletter.
The table below contains a summary of the Fund’s accounts for the year ended 31 March 2024. The Fund’s annual accounts were audited by Deloitte LLP, the independent auditor.
From the Accounts
Who’s in the Fund?
The Fund closed to future accrual as at 31 December 2020. The membership summary shows the position on 31 March 2024.
Total
Pension Protection Fund
The Pension Protection Fund (PFF) protects people across the United Kingdom who are members of ‘defined benefit’ pension schemes, often known as final salary schemes. They make sure members’ benefits are paid if the employer funding their pension becomes insolvent.
The Fund, like other defined benefit schemes, pays an annual levy to the PPF that forms part of its funding. You can find out more about how the PPF works at their website.