It only seems like days since we mused on the last round of “massive deficits improving and getting worse at the same time” set of headlines (that’s because it was!!), when along comes another one.
The article reports changes in the latest monthly instalment of the Pension Protection Fund’s (PPF) 7800 Index, a monthly tracker of the total assets and liabilities of schemes which are potentially eligible for PPF compensation. This is dutifully reported each month in the industry press along with bland comments about gilt equity ratios and risk.
Er, what’s the point? Monthly movements in the funding position of schemes that have a minimum 50 or 60 years plus to run are completely irrelevant to long term pension funding.
And I’m also struggling with the concept that the fact that 85% of final salary pension schemes in the UK have a deficit is news – 85% of final salary pension schemes having a surplus, now that would be something worth reporting.
Here at Spence & Partners we’ve been fighting pensions ignorance since our formation in 2000, and, I have to say, it’s taking longer than we thought.