Over the month to 31 May 2021, First Actuarial’s Best estimate (FAB) Index fell slightly, with the surplus in the UK’s 5,318 Defined Benefit (DB) pension schemes decreasing from £323bn to £312bn.

Since the last update, the Pension Protection Fund (PPF) has changed the methodology behind its assumptions it uses to calculate the PPF 7800 liabilities, from ‘A9’ to ‘A10’. Taking the new ‘A10’ methodology into account, the aggregate surplus on the PPF 7800 Index
improved during May 2021, increasing from £53.7bn to £94.6bn, with the funding ratio improving to 106%.

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