05 November 2009
The Pension Protection Fund (PPF) annual report has revealed
that its deficit has increased to £1.2bn in the 12 months to March
and has blamed an increase in the number of pension schemes falling
to the PPF.
It is also operating with an 88% funding level, which stood at
91% in the previous year.
PPF chairman Lawrence Churchill said: "The economic downturn has
highlighted how vital PPF protection has been. None of us want to
go back to an era where people lost their pension as well as their
jobs. More importantly, the pension protection framework has proved
resilient in testing times and our confidence that we can continue
to pay our members compensation they are due is undiminished. The
liquidity of the PPF remains strong and we have kept our levy
unchanged in real terms for next year."
