The total funding deficit of U.K. FTSE 350 companies’ pension funds increased 9.5% to £127 billion ($189.6 billion) in March, Mercer said.
Its pensions risk survey data as of March 31 show an increase in liabilities of 2.4% to £756 billion from a month earlier, while assets rose 1.1% to £629 billion compared with Feb. 27.
The total funding level decreased to 83% from 84% as of Feb. 27.
Ali Tayyebi, senior partner in Mercer’s retirement business, said in a statement accompanying the data that bond yields fell back in March, which reversed some of the rise in yields that was seen in February.
The investment consultant’s data relate to about 50% of all U.K. pension fund liabilities.