1 Pension Protection Fund Responsible Investment Report 2021/22 About the PPF: Protecting people’s How we are funded How we invest When an employer becomes insolvent and its pension We hold £39 billion in our investment portfolio scheme cannot a昀昀ord to pay the pensions promised, we (31 March 2022). This amount is managed in a broadly compensate scheme members for the pensions they have 50/50 split by internal and external investment teams. futures lost. We raise the money we need to pay PPF bene昀椀ts and We invest across public and private markets, seeking to the cost of running the PPF in four ways, shown in the capture both capital growth and reliable income generation chart below. to meet pension commitments. Our purpose is to protect the future of millions Split of funding sources of people throughout the UK who belong to Assets from pension schemes de昀椀ned bene昀椀t (DB) pension schemes. When 11.2% transferred to us The return we make the employers sponsoring these schemes fail on our investments we’re ready to help. The levy we charge on eligible pension schemes We do this by paying our members, investing 22.7% 42.1% Recovered assets we secure from sustainably and charging a levy. Our work has a insolvent employers real impact on people’s lives. So whatever we do, we strive to do it well, with integrity and members’ futures in mind. 24.0% The PPF in numbers as at 31 March 2022 9.7 million 5,220 294,847 £39 billion members of schemes we protect DB pension schemes protected PPF members* of assets under management * 187,039 members in payment and 107,808 deferred members with an average age of 66.