12.06.2025
Key achievements and milestones:
- Celebrated 20 years of protecting people’s pensions; a “policy success story.”
- Reduced the levy to its lowest ever level.
- £1.2bn paid out to its members.
- Maintained a strong financial position across the year.
- Growth portfolio delivered strong 6.0% return.
- ServiceMark with Distinction awarded for outstanding customer service.
The Pension Protection Fund (PPF) has today published its 2024/25 Annual Report and Accounts, marking its 20th anniversary with a year of strong financial performance, continued customer service excellence, and enduring commitment to serving its members, levy payers, and the wider pensions industry.
The PPF, which ultimately protects 8.8 million members of defined benefit (DB) schemes in the UK, has maintained its robust financial position. Total assets under management were £31.2 billion as at the end of March 2025, compared with the liabilities of £17 billion for the schemes which have transferred to it. Furthermore, following a strong performance from the growth portfolio of 6.0 per cent, the reserves that the PPF purposefully holds against future claims on the Fund, longevity risk, and any additional unexpected market risk, grew from £13.2 billion to £14.1 billion.
The PPF continued to deliver outstanding customer service to the more than 400,000 PPF and Financial Assistance Scheme (FAS) members it looks after. This year, the PPF also achieved ServiceMark with Distinction from the Institute of Customer Service – an accolade held by only twenty-eight organisations in the UK – recognising its consistently high levels of satisfaction from its members and levy payers. It also completed a record 45 Fraud Compensation Fund (FCF) cases, more than doubling the previous year’s total, benefitting over 2,300 people.
During the year, the PPF confirmed its plans to reduce the PPF levy for 2025/26 to £45 million and inclusion of a provision in its rules to calculate a zero conventional levy, should legislative changes in the Pension Schemes Bill progress sufficiently during the year. The PPF has also continued to prioritise supporting the DWP’s further consideration of its compensation framework, particularly levels of indexation on pre-97 pensions.
Impact continued to be a focus for the organisation, as across the year its investments supported significant economic growth and made a real difference to communities across the length and breadth of the UK. Research published by Frontier Economics in April showed that £15 billion – almost half – of the PPF’s investments are invested in the UK and collectively contribute to supporting £38.8 billion of UK economic activity, 460,000 jobs, and £7.5 billion in tax contributions.
Michelle Ostermann, Chief Executive Officer, said: “It’s a proud moment in our history as we mark twenty years of the PPF protecting UK defined benefit pensions, while acknowledging there is more for us to do and deliver for those who rely on us for protection – now and in the future.
“We will continue working hard in the best interests of our members and levy payers and believe it is the right time to reduce costs for levy paying schemes and their employers, as well as to consider the levels of indexation we pay our members. Having reached a position of financial maturity, our focus now is on working with government to drive change that benefits all of our members and levy payers.”
Kate Jones, Chair of the PPF, added: “This year has been one of reflection on how far we’ve come, but also looking ahead to the challenges and opportunities for the future. While our financial strength further underpins our ability to protect the pensions of our current and future members, we fully recognise this also brings responsibility and opportunities to work with government to progress the issues that matter most to our members and levy payers.”
The PPF has therefore welcomed the Pension Schemes Bill, which contains measures which would benefit PPF members and levy payers and will act quickly and effectively to implement any changes passed by Parliament.
In April, the organisation published its 2025-28 strategy, which outlines its priorities for the next three-year period to: act in the interests of those it protects; adapt and evolve; build on its strong foundations; and help shape positive change in the pensions industry.
In line with this strategy, the PPF will further evolve how it operates to deliver continued customer service excellence and strong investment performance whilst ensuring it runs efficiently. With the PPF’s enduring role and operational maturity, it will continue to work in partnership with government and industry to consider how it can help give people greater financial security in retirement, both for the members of schemes it protects and more widely.
Notes to Editors
The PPF’s Annual Report and Accounts 2024/25, ’20 years of protecting people’s futures’, is available to read here.
About the PPF
The Pension Protection Fund (PPF) is a public corporation, set up by the Pensions Act 2004, and has been protecting members of eligible defined benefit (DB) pension schemes across the UK since 2005. The PPF is run by an independent Board and accountable to Parliament through the Secretary of State for the Department for Work and Pensions. It protects close to 8.8 million members belonging to almost 5,000 pension schemes. If an employer collapses and its DB pension scheme cannot pay members what they were promised, the PPF pays compensation for their lost pensions. The PPF is funded by a levy charged to eligible schemes, the return on its investments, assets from pension schemes transferred into the PPF, and recoveries from insolvent employers.
The PPF has over £31 billion assets under management. Separate and additionally to the Pension Protection Fund, it also administers the Fraud Compensation Fund (FCF), the government’s Financial Assistance Scheme (FAS). It looks after over 400,000 members across the PPF and FAS.
The PPF’s economic impact
Research published by Frontier Economics in April, ‘The Economic Footprint of the Pension Protection Fund’, found that:
- With around £32 billion of assets under management – nearly half (c.£15bn) of which is invested in the UK – the PPF significantly supports the UK economy, government and businesses through debt and equity-based finance.
- The companies and assets the PPF invest in make a significant contribution to the UK’s economic output, employment and taxes.
- The PPF’s equity and debt financing investments help support:
o £38.8bn of UK economic activity – around 2% of UK GDP
o 460,000 jobs across the UK
o £7.5bn in tax contributions - The PPF’s investments are spread widely across the country, benefiting all regions, and a wide range of sectors including manufacturing, construction, and infrastructure.
Examples of the PPF’s current investments in productive finance:
- The Thames Tideway Tunnel: In August 2015 the PPF became part of a consortium investing £4.2bn into the building of London’s new 25km super-sewer, the Thames Tideway Tunnel. The super-sewer will intercept sewage overflows that would have been dumped into the River Thames and pump them away for treatment. Construction is largely complete and is now in testing ahead of operation in 2025.
- Cross London Trains: In 2020 the PPF acquired a share in the UK’s largest single train fleet, Cross London Trains (XLT). XLT is part of Thameslink passenger rail franchise, which covers the most critical North-South London commuter rail corridor, making it a key transport infrastructure asset in London.
- Riverside Energy from Waste (EfW): The PPF is a shareholder of the Riverside Energy from Waste (EfW) plant in Kent. A £900m expansion project will bring annual capacity up to 1.5m tonnes of non-recyclable waste by 2026, saving up to 300,000 tonnes of CO2 each year in comparison to landfilling.
For further press information, please contact:
PPF Press Office
020 8406 2107
[email protected]
FleishmanHillard
07880 053913
[email protected]
