Briefings
Updates
The FAB Index shows the financial position of the UK’s 5,318 DB pension funds on a long-term basis, allowing for realistic future investment returns.
It is updated every month using data from the PPF 7800 Index, to help trustees better understand the likely value of fund liabilities.
The FAR Index shows the rate of return needed for the UK’s 5,318 Defined Benefit pension schemes to be fully funded in aggregate.
It shows the relatively low rates of return that are needed, both in absolute terms and relative to inflation.
While liabilities calculated on a best-estimate basis aren’t suitable for scheme funding, we believe that trustees need this information, along with the buy-out solvency position, before they can arrive at a sensible value for funding.
Over the month to 30 April 2021, First Actuarial’s Best estimate (FAB) Index improved, with the surplus in the UK’s 5,318 Defined Benefit (DB) pension schemes increasing from £315bn to £323bn. The aggregate surplus on the PPF 7800 Index also improved during April 2021, increasing from £34.2bn to £53.7bn,...
Read moreOver the month to 31 March 2021, First Actuarial’s Best estimate (FAB) Index improved slightly, with the surplus in the UK’s 5,318 Defined Benefit (DB) pension schemes increasing from £305bn to £315bn. The aggregate surplus on the PPF 7800 Index also improved during March 2021, increasing from £14.6bn to...
Read moreOver the month to 28 February 2021, First Actuarial’s Best estimate (FAB) Index fell slightly, with the surplus in the UK’s 5,318 Defined Benefit (DB) pension schemes decreasing from £309bn to £305bn. The aggregate surplus on the PPF 7800 Index improved during February 2021, increasing from a deficit of...
Read moreOver the month to 31 January 2021, First Actuarial’s Best estimate (FAB) Index fell slightly, with the surplus in the UK’s 5,318 Defined Benefit (DB) pension schemes decreasing from £318bn to £309bn. The deficit on the PPF 7800 Index improved during January 2021, decreasing from £86.4bn to £65.0bn, with the...
Read moreOver the month to 31 December 2020, First Actuarial’s Best estimate (FAB) Index remained broadly stable, with the surplus in the UK’s 5,318 Defined Benefit (DB) pension schemes increasing slightly from £310bn to £318bn. The deficit on the PPF 7800 Index worsened slightly during December 2020, increasing from £78.8bn to...
Read moreSince the previous update, the Pension Protection Fund (PPF) has published its latest report on key information about UK pension schemes - The Purple Book. After taking the changes in the Purple Book on board, over the month to 30 November 2020, First Actuarial’s Best estimate (FAB) Index fell,...
Read moreFirst Actuarial’s Best estimate (FAB) Index improved slightly over the month to 31 October 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes reducing from £317bn to £307bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index improved slightly over the month to 30 September 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes increasing from £313bn to £317bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index decreased slightly over the month to 31 August 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes reducing from £328bn to £313bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index fell slightly over the month to 31 July 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes decreasing from £375bn to £328bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index fell slightly over the month to 30 June 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes decreasing slightly from £408bn to £375bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index fell over the month to 31 May 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes decreasing from £426bn to £408bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index remained stable over the month to 30 April 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes decreasing slightly from £427bn to £426bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index improved over the month to 31 March 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes increasing from £397bn to £427bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index fell slightly over the month to 29 February 2020, with the surplus in the UK’s 5,422 Defined Benefit (DB) pension schemes decreasing slightly from £400bn to £397bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index improved over the month to 31 January 2020, with the surplus in the UK’s 5,436 Defined Benefit (DB) pension schemes increasing from £395bn to £400bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index fell slightly over the month to 31 December 2019, with the surplus in the UK’s 5,450 Defined Benefit (DB) pension schemes decreasing slightly from £401bn to £395bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index fell slightly over the month to 30 November 2019, with the surplus in the UK’s 5,450 Defined Benefit (DB) pension schemes decreasing slightly from £414bn to £401bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index remained broadly stable over the month to 31 October 2019, with the surplus in the UK’s 5,450 Defined Benefit (DB) pension schemes decreasing slightly from £415bn to £414bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index improved over the month to 30 September 2019, with the surplus in the UK’s 5,450 Defined Benefit (DB) pension schemes increasing from £409bn to £415bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index deteriorated slightly over the month to 31 August 2019, with the surplus in the UK’s 5,450 Defined Benefit (DB) pension schemes decreasing from £416bn to £409bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index improved over the month to 31 July 2019, with the surplus in the UK’s 5,450 Defined Benefit (DB) pension schemes increasing from £401bn to £416bn.
Read moreFirst Actuarial’s Best estimate (FAB) Index improved over the month to 30 June 2019, , with the surplus in the UK’s 5,450 Defined Benefit (DB) pension schemes increasing from £387bn to £401bn.
Read moreConcerned about the risk of an Employer contribution increase as a result of high liabilities, Trustees of the Kennel Club Pension Fund turned to First Actuarial.
“They’re extremely professional and helpful. Their input always seems sound, logical and well presented. First Actuarial handled the transition well, they provide us with helpful guidance, and have delivered what they promised when they pitched for the work.”
The RSPB was determined to minimise the impact of its new defined contribution scheme on employees, and appointed First Actuarial to support the transition and select a provider with strong ethical values.
“I would definitely recommend working with First Actuarial. Their consultants went over and above the call of duty to make sure the project progressed smoothly.”
Taking responsibility for care services previously provided by a local authority, Bolton Cares turned to First Actuarial for help in setting up a competitive and affordable DC pension scheme for its staff.
“They’ve been really helpful and professional throughout the project, and we’ll use them again if we need specialist advice.”