The total surplus of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index increased 30.8% in September to £108.8 billion ($146.7 billion), according to an update Tuesday.
The surplus was £83.2 billion at the end of August.
At the end of September 2020, U.K. DB funds recorded a total deficit of £124.6 billion, London-based PPF said in the update. The PPF is the lifeboat fund for DB plans of insolvent U.K. companies.
The funding ratio improved to 106.4% as of Sept. 30, up from 104.7% as of Aug. 31. The funding ratio was 93.5% as of Sept. 30, 2020, the update said.
As of Sept. 30, 44.8% of the 5,318 pension funds covered by the index were in deficit with a total £109.4 billion, compared with 46.7% and £130.2 billion, respectively, as of Aug. 31. As of Sept. 30, 2020, 63.4% of pension funds were in deficit with a total of £253.4 billion.
Assets declined 3% during the month and rose 1% for the year ended Sept. 30 to £1.8 trillion.
Liabilities decreased 4.6% over September and declined 11.3% for the year to £1.69 trillion.
The FTSE All-Share index was down 1% in September and gained 27.9% for the year ended Sept. 30, the PPF said.
Five- to 15-year index-linked gilt yields declined 12 basis points in September but increased 18 basis point over the year that ended Sept. 30.