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Employer  >  Trustee Zone  >  OPS Matters  >  DB pensions universe risk profile aka The Purple Book 2007

DB pensions universe risk profile aka The Purple Book 2007

The Pensions Regulator (TPR) and the Pension Protection Fund (PPF) published the second Purple Book on 18 December 2007. This book provides the most up to date information on the UK's defined benefit (DB) pensions universe - which affects more than 12.5 million people.

The highlights

Section 2 - The data

Based on new scheme returns for 5,892 defined benefit schemes covering around 75% of all DB schemes and 90% of liabilities.

Section 3 - Scheme demographics

Provides statistics on the number of open and closed schemes including scheme size, status, membership numbers and industry type.

Section 4 - Scheme funding

Details scheme funding levels on 31 March 2006 and 2007 comparing funding levels, rates of insolvency, the way assets are invested and highlighting trends between larger and smaller schemes and sectors.

Section 5 - Funding sensitivities

This chapter describes the volatility and sets out various sensitivities affecting fund values

Section 6 - Insolvency risk

Examines the insolvency risk of sponsoring companies of DB schemes and outlines the various ways risk is assessed by TPR and PPF.

Section 7 - Asset allocation

Analyses the asset allocation of private sector DB pension schemes using data obtained from the scheme returns. It looks at how asset allocation varies with scheme size, maturity, insolvency probability and scheme funding.

Section 8 - Long-term risk and short-term risk concentration

Detailed analysis of how risks affect the calculation of levies.

Section 9 - Levy payments to the PPF 2006-2007

This new chapter looks at the 2006-2007 levy payments of 7,601 private sector DB schemes that have been invoiced by September 2007. It describes how levy payments vary with scheme size, insolvency probability and funding level.

Section 10 - Schemes in the PPF assessment process

This new section looks at the section 179 schemes in an assessment period within the PPF as at 30 March 2007. You can also find out the number of people benefiting from PPF protection.

Do I need to read this?

In its first year, almost 150,000 copies of The Purple Book were downloaded by the pensions industry, confirming that it's an invaluable and unique information source.

This year the Purple Book is stocked full of accurate and up to date facts and figures based on new information from scheme returns provided to TPR, we think it's worth a look!