The aggregate deficit of occupational pension funds covered by the U.K. Pension Protection Fund's 7800 index decreased 7.5% to £223.1 billion ($346 billion) in June, as rising gilt yields pushed down liabilities, the PPF's monthly update showed.
Increases in nominal and index-linked gilt yields saw liabilities fall 3.6% to £1.467 trillion as of June 30. The PPF's update said nominal 15-year gilt yields rose 23 basis points, and index-linked yields increased 13 basis points over the month.
However, assets fell 2.9% to £1.244 trillion, with a fall of 6% in the FTSE All-Share index.
The funding ratio increased to 84.8% as of June 30, from 84.1% as of May 31.
The PPF's index covers 6,057 pension funds, of which 79.1% were underfunded. That was an improvement from 79.4% as of May 31. The remaining 20.9% had a surplus, up from 20.6% a month earlier.
