The total surplus of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index declined 28.9% in November to £81.4 billion ($107.9 billion), according to an update Tuesday.
The surplus was £114.5 billion at the end of October.
At the end of November 2020, U.K. DB funds recorded a total deficit of £78.8 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 shrank to 104.6% as of Nov. 30, down from 106.8% as of Oct. 31. The funding ratio was 95.8% as of Nov. 30, 2020, the update said.
As of Nov. 30, 46% of the 5,215 pension funds covered by the index were in deficit with a total £125.9 billion, compared with 42.6% and £103.4 billion, respectively, as of Oct. 31. As of Nov. 30, 2020, 60.5% of pension funds were in deficit with a total of £221.4 billion.
Assets increased 2.1% during November and rose 2.4% for the year ended Nov. 30 to £1.84 trillion.
Liabilities increased 4.2% in November but declined 6.2% for the year ended Nov. 30 to £1.76 trillion.
The FTSE All-Share index was down 2.2% in November but it gained 17.4% for the year ended Nov. 30, the PPF said.
Five- to 15-year index-linked gilt yields declined 28 basis points in September, but decreased 35 basis point over the year that ended Nov. 30.