The total deficit of corporate U.K. pension funds fell 7.4% to £414 billion ($517.2 billion) for the month ended Nov. 30, but increased 56.2% over the year ended that date.
The latest figures by JLT Employee Benefits showed the funding ratio of these pension funds improved to 77%, from 76% as of Oct. 31, but worsened from 82% as of Nov. 30, 2015.
Assets decreased 2% over the month, and increased 12.8% over the year ended Nov. 30. Liabilities fell 3.3% over the month, but grew 20.4% over the year.
For the 100 largest companies in the U.K., the deficit improved 7.5% to £160 billion for the month of November, and the funding ratio improved to 78% from 77% as of Oct. 31. For the year, deficits worsened 92.8%, and the funding ratio was 82% as of Nov. 30, 2015.
FTSE 350 companies saw their deficits improve 8.1% to total £181 billion, with a funding ratio of 78%. That compares with a 77% funding ratio as of Oct. 31. For the year, deficits of these defined benefit funds increased 88.5%, with the funding ratio falling from 86% as of Nov. 30.
Charles Cowling, director at JLT Employee Benefits, in a statement accompanying the figures, warned that despite a slight easing in deficits, “any current calm in markets may just be a temporary eye of the storm respite before the Brexit negotiations start in earnest.”
Mr. Cowling also cited “critical elections” in France and Germany next year as having the potential to destabilize markets.