pension protection fund surplus

penpon

Hello all,
i dont know if this subject has been mentioned on here but i was wondering what people are thinking about the surplus ? apparently there is billions in the fund.

westv

Has no relevance to anything seeing as we have no idea how many funds in the future may need rescuing.

Seabee42

Yeah that's true but there are an awful lot of companies with pension liabilities they will never buy out in full. There is always the possibility of under funded schemes falling into the PPF and adding to the liabilities.


What it does do is make it less likely those receiving benefits from the PPF will have them cut in future.

Marcon

These things are only ever a snapshot in time. The idea of paying more to those whose pensions are currently in the PPF seems ill advised to say the least. Look at how the PPF is funded - and with fewer and fewer schemes around to pay the levy, what happens in future if....

solar_power

Surplus!!!! They will be thinking of a pension holiday next.

westv

Seabee42 wrote: »

What it does do is make it less likely those receiving benefits from the PPF will have them cut in future.

Can you imgaine the fire that would rain down on the Government of the day if benefits were cut.

dunstonh

A surplus one year could be a shortfall the next. Seeing as we are at a peak in the market, you would hope to be in a surplus at this point.

kidmugsy

dunstonh wrote: »

Seeing as we are at a peak in the market, you would hope to be in a surplus at this point.

Logically they ought to invest in whatever the DB funds don't invest in. So if the latter are mainly in equities and bonds, the PPF should be largely in gold and gingerbread men, or whatever.