11 March 2009
The Pension Protection Fund (PPF) publishes monthly updates on
the funding position of around 7800 private sector defined benefit
(DB) pension schemes. This index is called the PPF 7800.
The latest update of the PPF 7800 Index shows that the funding
position the 7,800 defined benefit funds is estimated to have
worsened over a month to a deficit of £218.7bn, at the end of
February 2009, from a deficit of £190.6bn the previous month.
Scheme funding is also worse than it was a year prior to the latest
figures - a £67.1bn deficit in February 2008.
Katja Hall, CBI Director of
Employment, said: "The increase in pensions liabilities this month
reflects the current volatility in financial markets. The
Government and the Pensions Regulator must allow firms to take a
long-term approach. If they do not do this, firms could be forced
to make large contributions to their pension schemes when they can
least afford them. This would not be in the interests of pension
funds, companies, the economy or the Government. We risk unintended
consequences if we do not allow a long-term approach that lets
companies fund their pension schemes over time."
