Funding deficit for UK DB schemes jumps to £21.8bn
UK - Funding for final salary pension schemes took a turn for the worse last month, according to the Pension Protection Fund (PPF).
The PPF's 7800 index, which tracks more than 6,600 defined benefit (DB) pension schemes, showed the funds' aggregate deficit increasing to £21.8bn as at end-June.
At the end of May, the index's constituents had enjoyed an £11.7bn surplus.
Moreover, the PPF said this month's estimates had been based on more up-to-date information, which boosted scheme funding by approximately £50bn.
The PPF said more than 4,420 DB schemes were in deficit last month, representing nearly 70% of the total.
Total assets came to £901.5bn, while total liabilities were £923.3bn - representing a funding ratio of 97.6 per cent.
The PPF attributed June's troubles to a combination of falling stock markets and rising liabilities.