On the go: The aggregate surplus of the 5,215 defined benefit schemes in the Pension Protection Fund 7800 Index increased by £42.8bn in March.
This meant that the surplus rose to £176.4bn at the end of last month from £133.6bn in February.
Section 179 liabilities, the level of assets needed to secure PPF-level benefits with an insurer, were 111.4 per cent funded in March, up from 108.4 per cent in the previous month.
By the end of March, total assets in DB schemes stood at £1.72tn, while total liabilities were £1.55tn. There were 1,908 schemes in deficit and 3,307 schemes in surplus, the PPF stated.
The aggregate shortfall of the schemes in deficit at the end of March was £62.9bn, down from £83.1bn in the previous month.
According to Lisa McCrory, PPF’s chief finance officer and chief actuary, the aggregated funding ratio of 111.4 per cent is “the highest it’s been since June 2007”.
“Scheme funding levels continue to be impacted by the increase in bond yields, which have moved to reflect expectations that the Bank of England’s policy rate will be higher in the coming years than it has for the previous decade,” she added.
