The Pensions Regulator

Second Purple Book brings pensions landscape up-to-date

Ref: PN/07-20
18 December 2007

• The Purple Book 2007 is most up-to-date picture of DB pension landscape
• Contains new information about PPF levy and the people it protects
• Helps PPF and Pensions Regulator to make decisions on best evidence available

The most up-to-date picture of the UK’s defined benefit pensions universe – which affects more than 12.5 million people – was published today (Tuesday) by the Pensions Regulator and the Pension Protection Fund (PPF).

The second version of the Purple Book, first published in December 2006, pulls together the latest data and analysis of the defined benefit pension landscape, including areas such as scheme size, industry-type, funding levels, rates of insolvency and the way assets are invested.

This year, it also contains new information about the number and size of claims on the PPF, a breakdown of levy payments made by eligible schemes and the number of people benefiting from PPF protection.

In its first year, almost 150,000 copies of the Purple Book were downloaded by the pensions industry, its advisors and analysts, confirming its position as a unique information source.

PPF chief executive Partha Dasgupta said: “This year’s Purple Book highlights that a significant proportion of the long-term risk facing the PPF is related to large, currently stable businesses, and that is why we have recently announced our intention to work with industry to develop the pension protection levy based on a better understanding and management of long-term risk.”

Pensions Regulator chief executive Tony Hobman added: “In the past year, the first edition of the Purple Book has proved an invaluable tool to help us deliver regulation focused on those schemes at most risk. This second edition, with its additional information and analysis, will help enhance that delivery.”

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Editor's notes

1. The Purple Book can be found on the regulator’s website at http://www.thepensionsregulator.gov.uk/ and on the PPF website at http://www.pensionprotectionfund.org.uk/.
   A highlights factsheet is available from the press office.
2. The Pensions Regulator is the UK regulator for work-based pensions. Its powers include the ability to: collect detailed scheme information; issue improvement notices and third party notices, enabling the regulator to ensure problems are put right; freeze a scheme that is at risk while the regulator investigates; disqualify trustees who are judged not fit and proper to carry out their duties; and issue a contribution notice or financial support direction. The Pensions Act 2004 also imposes a statutory obligation on 'whistleblowers' to report to the regulator suspected breaches of the legislation
3. The Pension Protection Fund, which opened its doors to business on 6 April 2005, was set up under the provisions of the Pensions Act 2004.  It has been established to pay compensation to members of eligible defined benefit and hybrid pension schemes when there has been a qualifying insolvency event in relation to the employer, and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation.

For further information:  

Pension Protection Fund: Richard Hunt 0208 633 5931. Out of hours: 0789 4255561

The Pensions Regulator: Amy Balchin 01273 627207. Out of hours: 01273 627750. Non-press enquiries: 0870 6063636