The total deficit of occupational pension funds covered by the U.K. Pension Protection Fund’s 7800 index decreased 0.4% to pound;241.3 billion ($368.8 billion) in May as asset increases more than offset rising liabilities, the PPF’s monthly update showed.
Decreases in nominal and index-linked gilt yields saw liabilities rise 0.4% to £1.522 trillion as of May 31. The PPF said 15-year gilt yields — both nominal and index-linked — fell one basis point, according to the May update.
However, assets rose 0.6% to £1.281 trillion, with a 1% rise in the FTSE All-Share index in the month.
The funding ratio increased slightly, to 84.1% as of May 31, from 84% as of April 30.
The index covers 6,057 pension funds. Of those, 79.4% were underfunded, compared with 79.6% as of April 30. The remaining 20.6% had a surplus, up from 20.4% a month earlier.
