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Pension Funds

PPF’s latest 7800 index shows U.K. pension plans closer to full funding

The total deficit of all corporate defined benefit funds covered by the Pension Protection Fund's 7800 index fell 29.3% in April to 81.7 billion ($112.6 billion).

The deficit also fell for the year by 54.6%.

The latest update by the PPF, which is the U.K. lifeboat for funds of insolvent companies, said the funded level was 95.1% as of April 30, up from 93.1% as of March 31 and 89.5% a year earlier.

Assets grew 0.7% over the month and 2.6% for the year to 1.577 trillion. The FTSE All-Share index was up 4.2% for the year.

Liabilities fell over the month and for the year, by 1.3% and 3.4%, respectively, to 1.659 trillion. Conventional 15-year gilt yields rose 10 basis points in April and 19 basis points over the year. Index-linked five-to-15-year gilt yields rose by 2 basis points for the month and by 44 basis points for the year.

The proportion of pension funds with a deficit fell to 65.1% as of April 30, vs. 67.9% as of March 31 and 72.6% a year earlier. There were 5,588 funds covered in the index.