Total U.K. pension fund surplus, funding ratio decrease slightly in January
The aggregate surplus of U.K. defined benefit funds covered by the PPF 7800 index decreased slightly in January, by 0.6% to £374.4 billion ($463.4 billion).
The surplus more than doubled for the year ended Jan. 31, from £146.4 billion, according to a Tuesday update by the Pension Protection Fund, London. The PPF is the lifeboat fund for pension funds of U.K. insolvent companies.
The aggregate funding ratio was 134.8% as of Jan. 31, compared with 136.5% as of Dec. 31. The funding ratio was 109.1% as of Jan. 31, 2022.
Assets increased by 2.9% for the month but fell 17.4% for the year to £1.45 trillion. Liabilities fell 4.2% for the month and by 33% for the year, to £1.08 trillion.
Five-to-15-year index-linked gilt yields were down 16 basis points in January and increased by 280 basis points over the year.
The majority of the 5,131 pension funds covered by the index were in surplus as of Jan. 31, at 86% — flat from a month earlier. As of Jan. 31, 2022, when the index covered 5,215 pension funds, 59.8% were in surplus.
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