The aggregate deficit of the U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index is estimated to have decreased to £51.7 billion ($65.6 billion) at the end of June, from a deficit of £69.9 billion at the end of May.
The position has worsened from a year ago, when the pension funds in the London-based PPF index recorded a deficit of £45.8 billion as of June 30, 2018.
The funding level of pension plans improved over the month to 97% as of June 30, from 96% as of May 31. As of June 30, 2018, the funding level was 97.2%.
Assets rose over the month and the year, by 1.6% and 5%, respectively, to £1.689 trillion. For the month, liabilities increased 0.5% and 5.2% for the year, to £1.741 trillion.
The PPF said in an update that the FTSE All-Share index improved 3.7% for the month and 0.6% for the year. Five- to 15-year index-linked gilt yields fell 3 basis points in June and fell 61 basis points over the year.
As of June 30, 60% of the 5,450 pension funds covered by the index had a deficit, compared with 62% as of May 31. As of June 30, 2018, 60.6% of the 5,450 pension funds covered by the index had a deficit.
