The Pension Protection Fund (PPF) and the Pensions Regulator (TPR) have jointly published the fourth Purple Book, an in-depth analysis of defined benefit (DB) schemes' performance throughout a turbulent 2008/09.

Much of the data does not come as too much of a surprise - the proportion of schemes still open to new membership and new accrual continues to decline. Only 27 per cent of the Purple Book's 2009 sample remained open schemes, compared to 31 per cent in 2008 and 36 per cent in 2007.

The aggregate scheme funding position on a s179 basis deteriorated from a £12.3bn surplus at 31 March 2008, corresponding to a funding level of 101.5 per cent, to a deficit of £200.6bn (79.5 per cent funding level) at 31 March 2009. Funding on an accounting (FRS17) basis had also declined from 100.9 per cent at 31 March 2008 to 93.5 per cent at 31 March 2009.
The Purple Book 2009 - which uses information related to 97 per cent of the DB schemes eligible for PPF compensation and 99 per cent of their estimated total liabilities - is based largely on new information contained in returns provided to TPR by schemes from the end of March 2009.

"This year's Purple Book highlights how the dramatic deterioration in the economic and financial environment during 2008/09, not just for the UK but for most major economies, led to heightened risk for the schemes in the PPF universe," explained PPF chief executive, Alan Rubenstein. "The Purple Book continues to provide important information on trends in defined benefit pension schemes illustrating the risk these schemes pose to the PPF, in terms of underfunding levels and the likelihood of claims on us."

Tony Hobman, chief executive at TPR, added that the latest Purple Book gives an insight to the effects of the stormy economic climate.

"The data reflects the situation faced by schemes up to March 2009. While there has since been an upturn in the financial markets, we remain alive to the risks and continue to work with schemes on their recovery plans. We work closely with the PPF to monitor the risks," Hobman said.

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