The Pension Protection Fund (PPF) has unveiled its strategic objectives for the next three years to reflect a "mature organisation".

The updated strategic objectives are to meet its funding target through effective management of its balance sheet, to deliver excellent customer service and to pursue its mission within a high calibre framework of risk management, the PPF said.

The PPF forecasted in its strategic plan that by 2016 it will be equivalent in size to one of the give largest pension funds in the country, with 500,000 members, has assets of £22bn and is on course to meet its long-term funding target.

In the report, the PPF said it is 84% confident of achieving self-sufficiency by 2030, but admitted that improving that position would be challenging because of the challenging economic and pension scheme climate.

The PPF said that there were "clear risks" over the next three years, including near record scheme deficits, low bond yields and slow economic growth, which could mean that the fund was likely to absorb larger deficits from transferring schemes than in the past.

The fund said it wasn't sure if the current economic conditions are the 'new normal', and that it would review the time horizon of its funding strategy "if it becomes appropriate".

First published 20.05.2013

monique_simpson@wilmington.co.uk