Pensions Bulletin 2026/30
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This edition: PPF reviews its valuation assumptions, and Pensions Minister and DWP Secretary of State remain in post.
PPF reviews its valuation assumptions
The Pension Protection Fund (PPF) has launched a consultation on proposed changes to the assumptions it uses for “section 143” valuations for PPF entry and “section 179” statutory valuations. These changes follow recent discussions with six bulk annuity providers and are intended to bring such valuation outcomes closer to insurance company pricing, while continuing to deliberately understate liabilities.
The main changes are increases to the discount rates and moving to more up-to-date mortality assumptions (“S4” base table and “CMI_2024” projections with adjustments), as well as increasing the assumed proportion of members who are married for schemes which only provide a survivor pension to a legal spouse or civil partner. The introduction of prospective increases on eligible pre-1997 PPF compensation, expected primarily from January 2027 will be in a separate update to the guidance and is not included in the current consultation.
The PPF says that the combined impact could reduce the assessed value of scheme liabilities of between 2.2% and 7.5%, dependent on the tranche of benefit and the individual scheme’s duration and membership profile.
The PPF also seeks views on whether certain assumptions used for section 179 valuations should be set in line with standard section 143 assumptions for superfunds authorised by the Pensions Regulator. This would include use in superfund wind-up triggers.
Consultation closes on 16 September 2026 and the PPF intends to publish its decision in the first half of October 2026 and backdate the changes for valuations with effective dates on or after 31 May 2026.
Comment
The proposals reflect the continued competitiveness of the bulk annuity market and should provide a more up-to-date basis for the valuations to which they apply. We are pleased to see the PPF addressing the wider use of section 179 valuations for superfunds, to complement the new superfund legislation under the Pension Schemes Act 2026.
Pensions Minister and DWP Secretary of State remain in post
The recent ministerial reshuffle, following Andy Burnham’s appointment as Prime Minister, leaves the pensions team unchanged. Torsten Bell remains Parliamentary Secretary at both HM Treasury and the Department for Work and Pensions, while Pat McFadden remains Secretary of State for Work and Pensions.
Baroness Sherlock also remains in post as a Minister of State at the DWP – recently she represented the Government on pensions matters in the House of Lords (for example, during the passage of the Pension Schemes Act - see Pensions Bulletin 2026/16).
The appointment of John Healey as Chancellor, replacing Rachel Reeves, is also notable, since this will undoubtedly affect pensions policy and outcomes.
Comment
With the recent publication of the roadmap to implement measures in the Pension Schemes Act (see Pensions Bulletin 2026/28), continuity in the DWP pensions team should help maintain momentum as the Government moves into a demanding delivery phase.
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