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Author:
Publisher:
ISBN: 9781843884279
Category : Pensions
Languages : en
Pages : 11
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Book Description
Author:
Publisher:
ISBN: 9781843884279
Category : Pensions
Languages : en
Pages : 11
Get Book Here
Book Description
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 9780102963465
Category : Business & Economics
Languages : en
Pages : 44
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Book Description
The Pension Protection Fund offers protection to some 12.4 million pensioners in private sector defined benefit (often known as final salary) pension schemes should their employer become insolvent. The Fund currently manages its assets well and has not been exposed to severe losses in the recession. In 2008-09, the Fund's investments increased in value by 13.4 per cent. The Fund's standard investments saw a return of minus 3.4 per cent in 2008-09 (against the market average for the same combination of asset classes of minus 3.6 per cent). But, as the Fund's assets grow, the investment operation will require additional skills and the Fund should consider adapting its investment processes. The Fund's deficit increased during the recession - from £517 million in March 2008 to £1.2 billion in March 2009 - largely because of the combined deficit of the increased number of schemes being assessed on whether they should be transferred to the Fund. However, the value of the Fund's assets far outweighs its annual compensation payments: at the end of March 2009 its assets were £3.2 billion but its current compensation payments amount to £70 million a year. The Fund has developed a suitable model to assess future liabilities and this has proved resilient to a range of stress tests. The model's longer-term projections are sensitive to important assumptions, so the Fund should establish a framework for illustrating the sensitivity of output from its long-term risk model.
Author: Anthony Neuberger
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
We develop a model of the Pension Protection Fund (PPF), a defined benefit pension guarantee system for the UK, based on an analogy between pension liabilities and corporate debt obligations. We show that the PPF is likely to face many years of low claims interspersed irregularly with periods of very large claims. There is a significant chance that these claims will be so large that the PPF will default on its liabilities, leaving the Government with no option but to bail it out. The cause of this problem is the double impact of a fall in equity prices on the PPF: it makes sponsor firms more likely to default, and it makes defaulted plans more likely to be underfunded. We use our model to derive a fair premium for PPF insurance under different circumstances, to estimate the extent of cross-subsidies in the PPF between strong and weak sponsors and to show that risk rated premiums are unlikely to have a substantial effect on either the size or the lumpiness of claims. We argue that for the PPF to operate effectively, it should be introduced in tandem with strong minimum funding requirements and a lower level of benefit guarantee than at present.
Author: John Cotter
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper discusses the financial risks faced by the UK Pension Protection Fund (PPF) and what, if anything, it can do about them. It draws lessons from the regulatory regimes under which other financial institutions, such as banks and insurance companies, operate and asks why pension funds are treated differently. It also reviews the experience with other government-sponsored insurance schemes, such as the US Pension Benefit Guaranty Corporation, upon which the PPF is modelled. We conclude that the PPF will live under the permanent risk of insolvency as a consequence of the moral hazard, adverse selection, and, especially, systemic risks that it faces.
Author: Pension Protection Fund
Publisher:
ISBN: 9781474108577
Category :
Languages : en
Pages : 124
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Book Description
Author: Great Britain. Pension Protection Fund
Publisher:
ISBN: 9780102969245
Category :
Languages : en
Pages : 126
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Book Description
Pension Protection Fund annual report and Accounts 2009/10
Author: Great Britain. Pension Protection Fund
Publisher:
ISBN: 9781474134743
Category :
Languages : en
Pages : 118
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Book Description
Author: Great Britain. Pension Protection Fund
Publisher:
ISBN: 9780102975048
Category :
Languages : en
Pages : 95
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Book Description
Pension Protection Fund annual report and Accounts 2010/11
Author: Great Britain. Pension Protection Fund
Publisher:
ISBN: 9780102980677
Category :
Languages : en
Pages : 118
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Book Description
Author: Great Britain. Pensions Group
Publisher:
ISBN:
Category :
Languages : en
Pages : 18
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Book Description
