Download or read book Pension Protection Fund written by Great Britain: National Audit Office and published by The Stationery Office. This book was released on 2010-02-05 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book The Pension Protection Fund written by Anthony Neuberger and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Financial Risks and the Pension Protection Fund written by John Cotter and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Pension Protection Fund Annual Report and Accounts 2013 14 written by Pension Protection Fund and published by . This book was released on 2014 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Introductory Guide to the Pension Protection Fund written by and published by . This book was released on 2005 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Protection Fund Annual Report and Accounts 2009 10 written by Great Britain. Pension Protection Fund and published by . This book was released on 2010-10-28 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pension Protection Fund annual report and Accounts 2009/10

Download or read book Pension Protection Fund Annual Report and Accounts 2015 16 written by Great Britain. Pension Protection Fund and published by . This book was released on 2016 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Protection Fund Annual Report and Accounts 2010 11 written by Great Britain. Pension Protection Fund and published by . This book was released on 2011-11-03 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pension Protection Fund annual report and Accounts 2010/11

Download or read book Pension Protection Fund Annual Report and Accounts 2011 12 written by Great Britain. Pension Protection Fund and published by . This book was released on 2012-10-18 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pensions written by Great Britain. Pensions Group and published by . This book was released on 2006 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Protection Fund 2014 15 Annual Report and Accounts written by Great Britain. Pension Protection Fund and published by . This book was released on 2015 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Protection Fund Annual Report and Accounts 2013 14 written by Great Britain. Pension Protection Fund and published by . This book was released on 2014 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Protection Fund Annual Report and Accounts 2012 13 written by Great Britain. Pension Protection Fund and published by . This book was released on 2013-10-24 with total page 115 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Department for Work and Pensions written by Great Britain. National Audit Office and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Protection Fund Annual Report Accounts 2018 19 written by Great Britain. Pension Protection Fund and published by . This book was released on 2019 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Protection Fund Annual Report and Accounts 2008 09 written by Great Britain. Pension Protection Fund and published by . This book was released on 2009-11-04 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pension Protection Fund annual report and Accounts 2008/09

Download or read book Evaluating the Financial Performance of Pension Funds written by Richard Hinz and published by World Bank Publications. This book was released on 2010-01-14 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: Countries around the world are increasingly relying on individual pension savings accounts to provide income in old age for their citizens. Although these funds have now been in place for several decades, their performance is usually measured using methods that are not meaningful in relation to this long-term objective. The recent global financial crisis has highlighted the need to develop better performance evaluation methods that are consistent with the retirement income objective of pension funds. Compiling research derived from a partnership among the World Bank, the Organisation for Economic Co-operation and Development (OECD), and three private partners, 'Evaluating the Financial Performance of Pension Funds' discusses the theoretical basis and key implementation issues related to the design of performance benchmarks based on life-cycle savings and investment principles. The book begins with an evaluation of the financial performance of funded pension systems using the standard mean variance framework. It then provides a discussion of the limitations inherent to applying these methods to pension funds and outlines the many other issues that should be addressed in developing more useful and meaningful performance measures through the formulation of pension-specific benchmark portfolios. Practical implementation issues are addressed through empirical examples of how such benchmarks could be developed. The book concludes with commentary and observations from several noted pension experts about the need for a new approach to performance measurement and the impact of the recent global financial crisis on pension funds.