The total deficit of U.K. corporate pension funds decreased 4.2% to £248 billion ($389 billion) in August, said JLT Employee Benefits in its latest monthly index.
Assets and liabilities fell almost in line with one another, keeping the funding level of all corporate pension plans unchanged from July 31, at 83%. Assets fell 2.6% to £1.222 trillion, while liabilities fell 2.8% to £1.47 trillion.
For the year ended Aug. 31, however, total deficits increased 17% and the funding level dropped from 85%.
FTSE 100 pension funds recorded a total deficit of £76 billion, a 7.3% decrease during the month. Assets decreased 1.8% to £536 billion and liabilities decreased 2.5% to £612 billion over the month ended Aug. 31. The funding level increased to 88% from 87% at the end of July. For the 12-month period, the funding level was unchanged, with total FTSE 100 deficits increasing 1.3%.
FTSE 350 company deficits also fell in the month, by 5.4% to £88 billion. The funding level increased to 87% from 83% a month previous. Assets fell 1.9% to £606 billion and liabilities also dropped, by 2.4% to £694 billion. For the one-year period, deficits increased 1.1%, while the funding level remained unchanged.