The total surplus of U.K. corporate pension funds covered by the Pension Protection Fund 7800 index increased 0.6% to £458.3 billion ($570.5 billion) at the end of April, coupled with an increase in funding ratio.

The funding ratio was 148.8% at the end of April, compared to 146.5% at the end of March this year. Of the 5,050 plans in the PPF 7800 Index, there were 505 plans in deficit and 4,545 in surplus.

Shalin Bhagwan, chief actuary at the Pension Protection Fund, said in a news release: “In the last month, we’ve seen the estimated aggregate surplus of eligible defined benefit pension plans continue to rise, while the funding ratio increased as well. These changes resulted from a 4% fall in liability values, largely driven by a sharp rise in government bond yields, which offset a 2.5% fall in assets held across the eligible universe.”

The month of April also showed a slight increase in the deficit of plans in deficit, which grew to £3.8 billion, according to Bhagwan reflecting the higher proportion of assets invested in classes that saw the largest reductions in value over the month, specifically bonds.

“Funding levels remain encouraging after the PPF’s latest update. With the market now anticipating interest rate cuts in the second half of the summer following indications from the Bank of England last week, we could see some volatility in scheme funding positions. This will be a new consideration for trustees who are exploring locking in favorable positions through bulk annuity transactions,” said Charlotte Fletcher, business development actuary at U.K. insurance firm Standard Life, part of Phoenix Group.

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