10 October 2008
As global stockmarkets continue to fall, the Pension Protection
Fund (PPF) liabilities have soared by 50% tumbling from a surplus
of £50bn a year ago to a £80bn deficit at the end of
September and growing to a reported £125bn. However, the PPF
has not yet received an increase in claims despite the global
financial turmoil.
Although the PPF is expecting bankruptcies to catch up with them
later this year, the scale that this will take is yet unknown. If
the PPF could not cover claims, it could reduce payouts or ask the
Government to raise the levy ceiling.
