The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund’s 7800 index worsened 37% in May to £176.3 billion ($217.6 billion).

The deficit was £128.5 billion as of April 30. The deficit of U.K. defined benefit funds also deteriorated over the year ended May 31, from £38.1 billion as of May 31, 2019, London-based PPF said Tuesday in an update.

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The funding ratio of the corporate pension plans covered by the index decreased over the month to 90.9% as of May 31, down from 93.1% as of April 30. The funding ratio was 97.7% a year ago, the update said. Assets increased 1.4% during the month and rose 8.6% for the year ended May 31, to £1.769 trillion. Liabilities increased 3.8% over the month and increased 16.7% for the year, to £1.945 trillion.

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The FTSE All-Share index improved 3.4% for the month but fell 11.2% for the year ended May 31, the PPF said. The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies. Five- to 15-year index-linked gilt yields decreased 29 basis points in May, and fell 51 basis points over the year. As of May 31, 66.8% of the 5,422 pension funds covered by the index were in deficit, compared with 64.6% as of April 30. A year ago, 70.6% of the 5,422 pension funds were in deficit.

“The impact of (the COVID-19 pandemic) continued to dominate global markets in May. Whilst equity markets continued their rebound throughout the month, widening inflation expectations saw a sharp decrease in real yields and therefore a corresponding jump in liability values,” Sion Cole, head of U.K. fiduciary business, at BlackRock said in an emailed comment.

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