Arabic
Chinese (Simplified)
English
French
German
Portuguese
Russian
SpanishU.K. corporate funds finish 2020 with increased deficits
The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund’s 7800 index increased 9.6% in December, to £86.4 billion ($117.3 billion).
The deficit was £78.8 billion at the end of November. Deficits also worsened for the year ended Dec. 31, from £10.9 billion, said an update Tuesday by the London-based PPF.
The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies. The funding ratio of the corporate pension plans worsened slightly to 95.5% as of Dec. 31, down from 95.8% as of Nov. 30.
The funding ratio was 99.4 % as of Dec. 31, 2019, the update said. Assets were up 1.9% during the month and rose 7.9% for the year ended Dec. 31, to £1.83 trillion. Liabilities increased 2.3% over the month and increased 12.3% for the year, to £1.92 trillion.
The FTSE All-Share index was up 3.9 % for the month and fell 9.8% for the year ended Dec. 31, the PPF said. Five- to 15-year index-linked gilt yields decreased 7 basis points in December and declined 59 basis points over the year.
As of Dec. 31, 60.3% of the 5,318 pension funds covered by the index were in deficit, compared with 60.5% as of Nov. 30. As of Dec. 31, 2019, 55.3% of the 5,422 pension funds were in deficit.
Read more @Pionline
