Pension Protection Fund Responsible Investment Report 2020/21 2 About the PPF When an employer becomes insolvent and its pension scheme cannot a昀昀ord to pay its promised pensions, we compensate scheme members for the pensions they have lost. We take over responsibility for payments once we have assessed that a scheme cannot a昀昀ord to buy bene昀椀ts from an insurance company which Protecting are equal to, or more than, the PPF would pay. Currently around 288,000 people are members of the PPF. Before the PPF, these people could have faced signi昀椀cant 昀椀nancial uncertainty and hardship. We protect almost 10 million members of more than people’s futures 5,000 DB pension schemes. How we are funded We raise the money we need to pay PPF bene昀椀ts and the cost of running the PPF in four ways: Split of funding sources Assets from pension schemes transferred to us The return we make on our investments Our purpose is to protect the future The levy we charge on eligible of millions of people throughout the pension schemes Recovered assets we secure UK who belong to Defined Benefit from insolvent employers (DB) pension schemes. When these We have £38 billion in our investment portfolio (31 March 2021) which is continually growing, and is schemes fail, we’re ready to help. currently managed both internally and externally. We do this by paying our members, 11.5% by charging a levy and by investing sustainably. 23.1% 41.5% Our work has a real impact on people’s lives, so whatever we do, we strive to do it well, with integrity and with their future in mind. 23.9%