The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index improved 0.85% at the end of June to £174.8 billion ($215.4 billion).
The deficit was £176.3 billion as of May 31.
The funded status of U.K. defined benefit funds deteriorated over the year ended June 30, from a £23.3 billion deficit, the London-based PPF said in an update, Tuesday.
The funding ratio of corporate pension plans increased over the month to 91% as of June 30, up from 90.9% as of May 31. The funding ratio was 98.6% a year ago, the update said.
Assets increased 0.3% during the month and rose 7.5% for the year ended June 30, to £1.78 trillion. Liabilities were flat over the month and increased 16.4% for the year, to £1.95 trillion.
The FTSE All-Share index improved 1.5% for the month but fell 13% for the year ended June 30, the PPF said. Five- to 15-year index-linked gilt yields decreased 1 basis point in June, and fell 49 basis points over the year.
As of June 30, 66.7% of the 5,422 pension funds covered by the index showed a deficit — unchanged from May 31. A year ago, 56.9% of the 5,422 pension funds had a deficit.
The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies.