Funded Level for UK Pensions Tops 90% in September

The aggregate deficit of the nearly 5,800 pension plans in the Pension Protection Fund’s PPF 7800 Index fell £62.4 billion to £158 billion ($209 billion) at the end of September, from a deficit of £220.4 billion at the end of August. During this time, the funding ratio increased to 90.6% from 87.6%, according to the PPF.

As of the end of September, the PPF 7800 had total assets of £1.52 trillion, and total liabilities of £1.68 trillion; there were 4,079 plans in deficit, with 1,715 that were in surplus. At the same time last year, the deficit was £373.5 billion, and the funding ratio was 79.8%. There were 4,261 plans in deficit at the end of August 2017 (73.5%) and 4,792 plans in deficit at the end of September 2016 (82.7%).

The number of plans in surplus rose to 1,715 at the end of September (29.6% of plans) from 1,533 at the end of August (26.5%). There were 1,002 plans in surplus at the end of September 2016 (17.3%)

Total assets decreased by 1.8% over the month, but rose 3.4% from September of 2016. Total liabilities at the end of September decreased 5.1% from the previous month, and 9% over the year.

The aggregate deficit of all pension plans in deficit at the end of September decreased an estimated £52.6 billion to £240.5 billion from £293.1 billion at the end of August. At the end of September 2016, the aggregate deficit of all pension plans in deficit was £414.2 billion. Meanwhile, the total surplus of plans in surplus increased to £82.5 billion at the end of September, from £72.7 billion at the end of August. At the end of September 2016, the total surplus of all plans in surplus was £40.7 billion.