The possible expansion of the PPF’s role in DB schemes

The Government is considering the expansion of the PPF’s remit to include possibly acting as a “master consolidator” or provider of aggregated services for smaller, poorly-performing DB schemes. This is one of the recommendations of a report from the Tony Blair Institute for Global Change, and follows the PPF’s departmental review published in December 2022, which in turn acknowledged the PPF’s success and the significant reserves it has accumulated.

The December 2022 review suggested that the DWP and the PPF should work together to understand the implications of the PPF’s funding position in light of the expected future decrease in the number of DB schemes. It noted that plans should be made in advance for any necessary legislative changes, for example, to address what happens to any funding which is surplus to requirements. We wonder if any consideration might be given to applying any surplus to a partial refund of levy payments to employers who have contributed to the PPF over many years, or to members who have had benefit cuts after their employer has entered the PPF?

In a recent statement, the PPF has welcomed the opportunity to work closely with the Government in exploring various options in additional ways to be of public benefit but maintains that delivering the best outcomes for its current members is its priority.