The aggregate deficit of occupational pension funds covered by the U.K. Pension Protection Fund’s 7800 index decreased 32.3% to £248.7 billion ($374.8 billion) in February.
A rise in gilt yields drove liabilities of these pension funds to fall 7.9% to £1.512 trillion as of Feb. 28. Total assets decreased 0.8% to £1.263 trillion, and the funding ratio increased to 83.6% from 77.6% at the end of January.
The index covers 6,057 pension funds, of which 80.1% had a deficit, and the remaining 19.9% had a surplus. That compared with deficits for 85.4% and surpluses for 14.6% as of Jan. 31.
In its funding update, the PPF said 15-year gilt yields rose 45 basis points, and 15-year index-linked gilt yields increased 22 basis points. It said these increases were reflected in the decreased liabilities.