On 18 December 2006, the Pension Protection Fund (PPF) and the Pensions Regulator published their 96-page "Purple Book", which analyses the "DB pensions universe risk profile", with the aim of increasing knowledge and raising awareness of final salary pension schemes in the UK. It focuses on risks to members and to the PPF, covering the following risk areas:

  • Demographics;
  • Scheme funding;
  • Funding sensitivities;
  • Insolvency risk;
  • Asset allocation; and
  • Short-term risk concentration.

The data has been sourced from a sample of around 5,800 schemes (with approximately 12.6 million members). This is believed to represent over half of UK final salary schemes and over 85 per cent of members. The Purple Book will be published annually to track changes in risk over a period of time, with the next report seeking to cover more schemes.