Pension Protection Fund sets out challenges for next three years

The Pension Protection Fund (PPF) has set out its plans for meeting the challenges of the next three years and beyond.

PPF publishes three year management plan
Sets out challenges for next three years plus key activities for 2008-2009
Strengthening financial resilience a priority
PPF membership could be similar to the largest pension schemes by 2012

It published its management plan for the three years between 2008-2009 and 2010-2011 - as well as a more detailed business plan which identifies the activities it will carry out during 2008-2009. It also flagged that it will review its strategy to 2012 later in the year.

PPF Chief Executive, Partha Dasgupta, said: "Following our third anniversary, the PPF is now firmly part of the pensions landscape and we are carrying out all the tasks given us by the Pensions Act 2004. But we recognise we have still more to do and the next three years will undoubtedly be as challenging as the last three.

"Strengthening our financial resilience will remain an important priority for us, particularly having seen the recent marked volatility in the financial markets, with the resulting knock-on effect on pension scheme funding. Also, by 2012, PPF membership could be the same as the largest final salary pension schemes in the UK and we could have assets of more than £15 billion."

Main areas of work for the PPF include:

consulting on developing the pension protection levy so that it better represents the long-term risk that final salary pension schemes pose to the PPF
developing a long-term investment strategy to ensure it remains appropriate as levies are paid and more scheme assets transfer to the PPF
introducing new technologies to streamline the PPF's work, and
strengthening relationships with all those interested in the work of the PPF.

Added Partha Dasgupta: "We clearly have a lot to do during the next three years and I look forward to working with all our stakeholders to deliver on what are ambitious plans and ensure we continue to play our part in restoring confidence in defined benefit pensions in the UK."