PPF 'concerned' over future claim growth
UK - The Pension Protection Fund (UK), the UK's £5.2bn (€5.58bn) pension lifeboat fund, has revealed it has concerns about the growth in future claims from pension funds and the nature of recovery in the UK.
Martin Clarke, executive director of financial risk at the PPF, told IPE on the sidelines of an industry conference in Amsterdam today: "Where we are at the moment is concerning, but not terminal."
According to Clarke, the PPF has not yet publicly determined the trigger point at which the PPF cannot handle pension fund deficits anymore, though he added: "There is no unlimited appetite."
He also told delegates if the current crisis does not ease "we are set for a period of high levies".
Clarke, who calls himself "director of worry" of the PPF, concluded ithe risk the PPF has to take over the next few years will be driven by events rather than by risk appetite.
The PPF yesterday said it would be able to handle a £1bn (€1.12bn) deficit, as the ailing UK pension scheme of defunct Canadian telecoms giant Nortel is poised to be placed in the rescue plan. (See earlier IPE story: PPF ready to face Nortel's £1.bn deficit)
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