The £38bn (€44.9bn) Pension Protection Fund (PPF) has set out its strategic plan for 2022-25, focusing on four core priorities.

These priorities are:

  1. meeting new challenges with brilliant service;
  2. excellence in asset and liability management;
  3. making a difference; and
  4. transforming ways of working.

Oliver Morley, the PPF’s chief executive officer, said: “Our strong performance against our 2019-22 strategic priorities, despite the challenges of the pandemic, has established a strong foundation for us to now build on. Our unique position allows us to continually look for new ways to innovate and exemplify best practice in pensions, asset management and customer service.”

He said that over the course of the next three years, the PPF would continue to invest in, and improve, services to its members and levy payers so it can “sustainably deliver high levels of satisfaction and remain as efficient as possible”.

Brilliant service

Key to delivering for its members in this next phase will be the successful implementation of the PPF’s amended compensation regime following the recent Hampshire and Hughes court rulings, the fund stated.

Effectively progressing a larger number of applications to the Fraud Compensation Fund, established to pay compensation to pension schemes whose assets have been affected by dishonesty, is another significant priority set out in the PPF’s new strategic plan.

“We know our members have gone through a lot before they come to us, and so we’re never complacent about the help we offer them. With this in mind, we understand the recent court rulings have caused uncertainty for some around what they’re entitled to,” Morley said.

He added that the PPF’s priority is to ensure all members receive the right compensation and are clear on what to expect.

Excellence in asset and liability management

The PPF has made significant progress in recent years towards its overall funding target. It currently stands in a robust financial position, but the external environment could change and risks to its financial resilience remain, it said.

The fund is currently conducting a planned review of its funding strategy, as the new strategic plan sets a target to complete it and publish its results this year.

Making a difference

The fund plans to develop and publish a holistic sustainability strategy, building on its approach to responsible investment and the significant progress already achieved in its strategic response to climate change and diversity and inclusion.

As a recent signatory to the Financial Reporting Council’s UK Stewardship Code 2020, the PPF is committed to driving change through thorough data-driven analysis and solutions, managing risk and setting new standards, the fund said.

Exploring more opportunities for sustainable investment in asset classes such as forestry and infrastructure will be a priority, as well as managing its own environmental impact, and that of its suppliers, it added.

The fund is also on track to meet its ambitious targets as set out in its 2020 diversity and inclusion strategy.

Transforming ways of working

Through its strategic plan, the PPF is also committing to the continued evolution of its technology and digital solutions to improve the experience for its members, levy payers, and employees while “maximising efficiency and allowing its people to focus on adding value”, it noted.

Morley said: “Our strengthened financial position ensures we’re well placed to withstand higher levels of insolvency claims without risking the security of our members’ benefits. At the same time, we’ll continue to look for new ways to support our levy payers.”

The PPF’s latest strategic plan and business plan can be found online.

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