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The PPF 7800 index

Every month we publish the PPF 7800 index giving the latest estimated funding position for all eligible defined benefit schemes - on a section 179 basis. The index is an official statistic produced in accordance with the UK Statistics Authority Code.

October 2024 update

Changes to our methodology

We will publish the next edition of the Purple Book in early December. As usual, the subsequent release of the PPF 7800 index will be updated to reflect the latest data. Alongside this update, we will introduce a number of refinements to the roll-forward calculation methodology used to estimate the asset and liability figures in the Purple Book and 7800.

While these have traditionally served as a simple index of market movements and trends, intended to be compared across a period of time, we understand that it would be useful to try to show the picture in absolute terms as well. For instance, we are now able to use more granular asset allocation data collected in annual scheme returns by the Pensions Regulator (TPR), applying a wider range of relevant market indices in our asset roll-forward calculations. In addition, where previously we did not take account of cashflows in and out of schemes – particularly benefit payments – our calculations will now include estimates of these.
 
These refinements will apply to our estimates of assets and liabilities calculated on a section 179 measure, as published in the Purple Book and the PPF 7800. Additional refinements to our estimates of full buy-out liabilities will also be made in the Purple Book. As we stated recently in our consultation on next year's PPF levy, we do not propose to make any such changes to our separate levy roll-forward methodology as it serves a different purpose.
 
Our new approach is similar in principle to the new methodology used by TPR, which can be seen in its July 2024 publication of the analysis accompanying the revised DB Funding Code. Our new asset estimates will also be more comparable with those published by the Office for National Statistics, but the differences in how each organisation’s figures are constructed and calculated will remain.

Highlights

  • The aggregate surplus of the 5,050 schemes in the PPF 7800 Index is estimated to be £476.0 billion at the end of September 2024, similar to the surplus of £475.0 billion at the end of August 2024.
  • The funding ratio increased slightly from 148.2 per cent at the end of August 2024 to 148.4 per cent.
  • Total assets were £1,458.8 billion and total liabilities were £982.8 billion.
  • There were 463 schemes in deficit and 4,587 schemes in surplus.
  • The deficit of the schemes in deficit at the end of September 2024 was £3.6 billion, similar to the £3.5 billion at the end of August 2024.

For a more in-depth look at the monthly changes to our data please see the link to the supporting data below.

View the full update

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View the supporting data

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Previous updates

2024

2023

Older updates are available on request.

 

Shalin Bhagwan, our Chief Actuary said, "The 7800 index tells a story of stability over the last month, with very little change in aggregate asset and liability values as, although index-linked gilt and FTSE All-Share indices did see some downward movement, the latter was offset by positive overseas equity moves, while bond yield movements between the month-ends were generally small.
 
"For the estimated funding ratio, this led to a small increase from 148.2 per cent at the end of August 2024 to 148.4 per cent at the end of September 2024. There were similarly minor movements in the estimated aggregate surplus, which saw a £1 billion increase to £476.0 billion, and the deficit of the schemes in deficit, which rose by £100 million to £3.6 billion."