The total deficit of defined benefit plans at companies in the U.K.’s FTSE 350 increased 3.6% during July to £116 billion ($195.6 billion).
The funding ratio also dropped to an almost four-year low of 83% as liabilities increased 0.9% to £699 billion and assets increased 0.3% to £583 billion in the month. The last time the funding ratio fell below 83% was August 2010.
Data from Mercer’s Pensions Risk Survey showed the funding ratio had fallen from 84% at the end of June.
“Despite intermittent improvements in funding levels, the broad trend of a gradually increasing month-end deficit, witnessed since the start of the year, continued over July,” said Ali Tayyebi, senior partner in Mercer’s retirement business, in a news release accompanying the data.
Mr. Tayyebi added the deficit is unlikely to shrink “unless there is a significant change in financial market conditions.”
The firm’s data covers about 50% of all corporate U.K. pension fund liabilities.