Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 1 Pension Protection Fund Responsible Investment Report 2022/23 our Chair of the year commitment at a glance and governance incorporating ESG to engagement shareholder rights the coming year Appendices About the PPF: P rotecting people’s How we are funded How we invest When an employer becomes insolvent and its pension We hold £32.5 billion in our investment portfolio scheme cannot a昀昀ord to pay the pensions promised, we (31 March 2023). This amount is managed in a broadly compensate scheme members for the pensions they have 50/50 split by internal and external investment teams. lost. We raise the money we need to pay PPF bene昀椀ts and We invest across public and private markets, seeking f uture s the cost of running the PPF in four ways: to capture both capital growth and reliable income generation to meet pension commitments. See page 18 for more detail on where we are invested. 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. Should 11% transferred to us The return we make an employer sponsoring one of these schemes on our investments The levy we fail, we’re ready to help. 34% charge on eligible pension schemes We do this by charging pension schemes a levy, 23% Assets recovered from insolvent investing levies and other capital sustainably, employers then paying the members of schemes we protect as required. Our work has a real impact on people’s lives. So whatever we do, we strive to do it well, with integrity and members’ futures in mind. 32% The PPF in numbers Key 昀椀gures as at 31 March 2023 Assets under Return of PPF levy PPF bene昀椀ts Actuarial 9.6 million 5,000+ 295,528 £32.5 Year PPF reserves Funding ratio management growth assets collected paid liabilities DB scheme DB pension PPF members in billion 2023 £12.1bn 156% £32.5bn 1.9% £386m £1.2bn £20.3bn members protected schemes protected payment or deferred of assets under management 2022 £11.7bn 137.9% £39bn 7.6% £476m £1.1bn £27.4bn