The Pension Protection Fund (PPF) maintained a strong financial position over the past year, as its reserves grew to £14.1bn in 2024/25, its Annual Report and Accounts have revealed.

The report showed that 2024/25 was a year of strong financial performance for the group, as total assets under management were £31.2bn as at the end of March 2025, compared with the liabilities of £17bn for the schemes which have transferred to it.

Additionally, following a strong performance from the growth portfolio of 6 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 £13.2bn to £14.1bn.

There has been growing scrutiny over the potential use of the PPF's reserves recently, with calls for this money to be used to fund changes to the PPF's compensation framework, and its administration levy.

However, Pensions Minister, Torsten Bell, warned that calls to use the PPF's surplus funds to fund inflationary increases were not as “straightforward” as suggested.

Some changes to the PPF's levy rules are already expected though, as the PPF previously confirmed its plans to reduce the PPF levy for 2025/26 to £45m and the inclusion of a provision in its rules to calculate a zero conventional levy, assuming that legislative changes in the Pension Schemes Bill progress sufficiently during the year.

The PPF's annual report emphasised that it has also continued to prioritise supporting the DWP’s further consideration of its compensation framework, particularly levels of indexation on pre-97 pensions.

Commenting on the update, PPF CEO, Michelle Ostermann, 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.”

PPF chair, Kate Jones, 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 annual report builds on the organisation's recently shared 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 annual report confirmed that the PPF will further evolve how it operates to deliver continued customer service excellence and strong investment performance whilst ensuring it runs efficiently.

It also committed to working 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.

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