• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Whitepapers
  • Spotlights
  • Digital Edition
  • PPTV
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Subscribe
  • Events
    • Upcoming events
      event logo
      Webinar - LGIM Climate Solutions: how we measure climate risk and alignment in investors’ portfolios

      As investors move to incorporate a greater focus on climate change into their portfolios, there is an increasing requirement to be able to quantify and report on the climate credentials of investments and to what extent they are aligned with the goals of the Paris Agreement.In this webinar, LGIM explain how they quantify portfolio alignment with the Paris goals, using a combination of historical and forward-looking measures.

      • Date: 24 Feb 2021
      • Webinar
      event logo
      Admin & Data Forum 2021

      This concise half-day event will explore a variety of different issues affecting scheme managers, through a combination of informative presentations and interactive panel debates, including GMP equalisation, the pensions dashboard, the accuracy and quality of members data and the latest trends in scheme administration.

      • Date: 04 Mar 2021
      event logo
      Defined Benefit Consolidation Conference

      Professional Pensions is hosting this concise digital event on the 25th March to provide a crucial update on where the current regulation stands on DB Consolidators, assess the different models available, what the expected funding levels are and the governance requirements. This event will be a combination of short presentations followed by live Q&A’s with our expert speakers allowing plenty of time to answer your questions.

      • Date: 25 Mar 2021
      • Digital Conference
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-24 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • How DC schemes can gain exposure to different asset classes in a low-return environment

      So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

      Download
      Pension freedoms three years on

      In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Spotlights
  • Digital Edition
Professional Pensions
Professional Pensions
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
  • Defined Benefit

Why you need to read the Purple Book

McCrory: The Purple Book is the most comprehensive overview of the DB universe
McCrory: The Purple Book is the most comprehensive overview of the DB universe
  • Lisa McCrory
  • 09 January 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

As the PPF and Professional Pensions get ready to launch the 2019 edition of the Purple Book, Lisa McCrory explains how trustees and the wider industry can use the data.

When we talk about the risks in the defined benefit (DB) pension schemes universe, The Pensions Universe Risk Profile - more commonly referred to as the Purple Book - gives a complete picture. It tells the story of how the DB landscape has changed over time, how trustees are managing the risks they currently face, and how these changes have affected the Pension Protection Fund (PPF).

The Purple Book provides the most comprehensive overview of the entire DB universe, which in the last report was a total of 5,450 schemes and 10.1 million members. The information in the book covers the membership profile, funding and investment strategy of these schemes, as well as the PPF's own membership profile and the levy it has collected.

Related articles

  • Time to move from words to action
  • Covid has forced us to a crossroads for tech
  • Guy Opperman: Landmark legislation moves pensions into the digital age
  • 'Good' net-zero pensions: Turning commitment into action

Although the book is compiled and published by the PPF, it pulls together information from a number of different sources. The information relating to the universe of DB pension schemes, for example, uses some of the information gathered by The Pensions Regulator (TPR) as part of annual return it receives from pension scheme trustees.

The Purple Book also gives us a breakdown by subset so comparisons can be made based on a range of characteristics, including size, funding position, and maturity. We find the most useful statistics are in relation to investment strategy and scheme status trends, such as the number of active members. It also gives us an understanding of the recovery plans that employers have in place to reduce their deficits as well as current levels of funding.

First and foremost, we use the Purple Book as an important part of our risk management framework. The data helps us gain an in-depth understanding of how the universe of eligible schemes that we protect is changing. For example, in the first five years of the Purple Book, there was a rapid decline in the proportion of schemes that still allowed new members to join, falling from 66% of schemes in 2006 to 31% in 2011. In contrast, over the last five years this proportion has remained relatively unchanged at around 20%.

Understanding these trends helps us paint a realistic picture of how this landscape might look like in the future. This enables us to model the level of claims the PPF may need to absorb in years to come, which, when combined with information relating to our membership, helps inform decisions about the future of the levy and our investment strategy. The result of this modelling is also published in the Purple Book, along with our progress towards our funding objective and financial resilience, which shows that we remain on track to meet our objective to be fully-funded by our target funding horizon.

The Purple Book is not just of use to the PPF. The data in the book is valued by industry experts including pension scheme trustees, chief finance officers, and consultants to help benchmark their own schemes against the universe. The government also uses it in policy discussions to understand the impact of policy change on the DB pension landscape.

As such, the value of the annual publication is clear: by sharing our knowledge, expertise and insights in a comprehensive, transparent and accessible way, we are better able to manage the risks that we face, and to promote best practice in managing risk, for the benefit of scheme members.

Lisa McCrory is chief actuary of the Pension Protection Fund and will take part in a webinar on the Purple Book hosted by Professional Pensions on 17 January at 10.30am.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Defined Benefit
  • Purple Book
  • Lisa McCrory
  • PPF
  • Pension Protection Fund

More on Defined Benefit

DRCs have been deferred for three months. Photo: Mitchells & Butlers
Covid restrictions lead Mitchells & Butlers to defer £13m of contributions

Mitchells & Butlers has deferred £13m of deficit recovery contributions (DRCs) after tier four Covid restrictions wreaked havoc across the hospitality sector.

  • Defined Benefit
  • 22 February 2021
Nearly £1bn of payments are due to the scheme by 2024
BA defers £450m of DRCs after 'swift and severe' pandemic closures

British Airways (BA) has deferred deficit recovery contributions (DRCs) totalling £450m following an agreement with trustees after a catastrophic year for the airline industry.

  • Defined Benefit
  • 22 February 2021
DB transfer complaints to ombudsman jump 44% in 2020
DB transfer complaints to ombudsman jump 44% in 2020

Jump from 554 in 2019

  • Defined Benefit
  • 16 February 2021
Plumbing Pensions reports 99% funding level as governance review poses 'watershed moment'

The Plumbing and Mechanical Services (UK) Industry Pension Scheme was 99% funded on a low-dependency basis, a valuation conducted amid economic turmoil has confirmed.

  • Defined Benefit
  • 12 February 2021
Tender watch: Enfield appoints Aon for investment consultancy

Professional Pensions rounds up some of the latest tender awards from across the industry.

  • Defined Benefit
  • 12 February 2021
blog comments powered by Disqus
Back to Top

Most read

BT, Ford and M&S schemes granted extension for legal challenge over government's decision to align RPI with CPIH
BT, Ford and M&S schemes granted extension for legal challenge over government's decision to align RPI with CPIH
Rothesay secures £7bn of pension benefits
Rothesay secures £7bn of pension benefits
BA defers £450m of DRCs after 'swift and severe' pandemic closures
BA defers £450m of DRCs after 'swift and severe' pandemic closures
Scottish Widows adds 289,000 members to build workplace market presence
Scottish Widows adds 289,000 members to build workplace market presence
TPR flexes powers after 8,200 quarterly AE breach increase
TPR flexes powers after 8,200 quarterly AE breach increase
Trustpilot

 

  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading