The total deficit of occupational pension funds covered by the U.K. Pension Protection Fund’s 7800 index increased 38% to a record £367.5 billion ($559.8 billion) in January.
Total liabilities increased 9% to £1.641 trillion as of Jan. 31, and total assets were up 3% to £1.273 trillion. The funding ratio decreased to 77.6%, from 82.3% as of Dec. 31.
The index covers 6,057 pension funds, of which 85.4% had a deficit, and the remaining 14.6% had a surplus. That compared with deficits for 81.5% and surpluses for 18.5% as of Dec. 31.
In its funding update, the PPF said the rise in liabilities reflected “decreases in nominal and index-linked gilt yields.” The PPF said 15-year gilt yields fell 0.41%, and index-linked gilt yields fell 0.22% over the month ended Jan. 31.