The Pension Protection Fund (PPF) is in a strong position to face the future, according its latest figures.

The organisation had a healthy balance sheet in its 2015/16 annual report and accounts.

The PPF figures show a £4.1bn surplus and a funding ratio of 116.3 per cent, despite the BHS pensions schemes, a potentially substantial claim, entering its assessment period shortly before the year end.

It says it remains "robust and capable of protecting members of DB schemes" and can ensure they receive compensation.

PPF's now has £23.4billion in assets and it attributes its success to its award-winning investment strategy, which delivered positive returns despite uncertainty in the wider economic environment.

Andy McKinnon, the PPF's chief financial officer, said: "We had a successful year, despite the challenging economic backdrop and our robust strategy has put us in a strong position to manage uncertainties ahead."

"Our long-term risk model predicts we will achieve financial self-sufficiency by 2030 in 93 per cent of scenarios."

McKinnon reassured members of DB schemes in the UK that their financial future will be protected should their employer fail.
The PPF has also published its annual Funding Strategy Update today – describing the framework in which the PPF makes its financial decisions and how it assesses financial risks to the fund.

The update is intended to place its financial results in a broader, long-term context.

Hans den Boer, the PPF's chief risk officer, said: "There are clear risks in the current economic environment, which have grown since the end of March point that our modelling is based on, but our funding strategy remains on track."

He added that the PPF continues to "make good progress" against its strategy.

Highlights of the report include the fact that new claims on the PPF were low relative to previous years, although the value of claims is higher, and 10,005 new members entered the PPF in the year 2015-2016, taking the total number of members to 225,500.

First published 28.07.2016

Lindsay.sharman@wilmingtonplc.com