The total deficit of U.K. corporate pension funds covered by the Pension Protection Fund's 7800 index fell 10.6% over the month ended April 30, but increased 17.1% for the year to that date, to £270.2 billion ($395 billion).
A rise in conventional 15-year gilt yields of 15 basis points, and a 12-basis-point rise in index-linked 15-year gilt yields, contributed to a 2.5% fall in total liabilities over April to £1.55 trillion. For the year, 15-year gilt yields were down 13 basis points, while index-linked 15-year gilt yields increased 2 basis points. Liabilities rose 4.1% over that period. The PPF uses the annualized yield on the FTSE U.K. gilts 15-year fixed-interest index, and the index-linked equivalent for its analysis.
Assets increased slightly over the month, by 0.1% to £1.28 trillion; and by 1.7% over the year ended April 30. The FTSE All-Share index increased 0.8% over the month but fell 9% over the year.
Funded levels improved to 82.6% as of April 30, vs. 81% as of March 31. At April 30, 2015, the funded level of these pension funds was 84.5%.
The PPF 7800 index covers 5,945 pension funds. Of those, 80.8% had a deficit as of April 30, vs. 82.3% a month earlier and 78.7% as of April 30, 2015.
