The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index decreased 29.6% in August to £140.5 billion ($188 billion).
The deficit was £199.5 billion at the end of July.
Deficits also worsened for the year ended Aug. 31, from £129.9 billion, said an update Tuesday by the London-based PPF. The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies.
The funding ratio of the corporate pension plans increased to 92.6% as of Aug. 31, up from 89.9% as of July 31. The funding ratio was 93% as of Aug. 31, 2019, the update said.
Assets were down 1.1% during the month but rose 1.9% for the year ended Aug. 31, to £1.75 trillion.
Liabilities fell 4% over the month and increased 2.4% for the year, to £1.89 trillion.
The FTSE All-Share index was up 2.4% for the month and fell 12.6% for the year ended Aug. 31, the PPF said. Five- to 15-year index-linked gilt yields increased 10 basis points in August and rose 5 basis points over the year.
As of Aug. 31, 64.6% of the 5,422 pension funds covered by the index were in deficit, compared with 67.9% as of July 31. A year ago, 64% of the 5,422 pension funds were in deficit.
