The total deficit of all U.K. corporate pension funds covered by the Pension Protection Fund's 7800 index increased 178.3% in October and 22.8% for the year ended Oct. 31, to £107.7 billion ($137.4 billion).
An update by the PPF said the funding level of these plans fell to 93.6% as of Oct. 31, vs. 97.7% as of Sept. 30 and 94.7% as of Oct. 31, 2017.
Assets fell 1.6% in October but grew 1.7% vs. figures from a year ago to £1.588 trillion. The FTSE All-Share index was down 5.2% for the year, while the FTSE All-World index fell 2.5% for the year.
Liabilities worsened over the month and year, by 2.6% and 2.8%, respectively. The update said conventional 10- and 15-year gilt yields fell by 13 basis points and 9 basis points each; while index-linked five-to-15-year gilt yields fell by 19 basis points in October.
For the year, conventional 10-, 15- and 20-year gilt yields were up 5 basis points, down 4 basis points, and down 7 basis points, respectively. Index-linked five- to 15-year gilt yields were down 3 basis points for the year.
The proportion of pension funds in deficit increased to 67.2% as of Oct. 31, vs. 61.5% as of Sept. 30 and 65.4% as of Oct. 31, 2017.