PPF research: Pension schemes fall back into deficit

The deficit of the UK’s largest defined benefit (DB) pension schemes worsened in April 2010 after being in surplus in the previous month, according to research from the Pension Protection Fund (PPF).

The aggregate funding (total assets minus total liabilities) of almost 7,400 DB schemes has swung from a surplus of £300 million at the end of March 2010 to a deficit of £2.2 billion at the end of April 2010.

However the figures show improvement from the same period a year ago. Scheme funding in April 2009 saw an overall deficit of £188.5 billion.

The PPF research stated that the deficit was largely driven by a decrease in value of scheme assets, which dropped 0.2% over the month due to a fall in UK and global equities.

Overall, 69% of DB schemes faced a deficit, an increase from 5,032 in March to 5,066 in April.

The number of schemes in surplus fell slightly from 2,300 in March to 2,276 in April.

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