UK - The £2bn (€2.3bn) Pension Protection Fund (PFF), the UK's lifeboat scheme for corporate defined benefit arrangements, has tapped State Street Corporation for a risk services mandate.

The financial service provider has been providing global custody, fund accounting, transition management, cash management and performance measurement services for the PPF since 2005.

State Street Global Advisors, the company's investment management arm, has also been managing an active UK equity mandate for the PPF since 2007.

The news comes as the aggregate funding position of almost 7,800 defined benefit funds is estimated to have worsened over the month to a deficit of £136bn by the end of November 2008, from a deficit of £97.3bn the month before.

The PPF said today scheme funding is worse than it was a year previously, when there was still a surplus of £26.1bn.

Updating its PPF 7800 Index, a monthly update on the state of defined benefit pension scheme funding, the PPF also said in November the total surpluses of schemes in surplus fell to £19bn from £24.7bn at the end of October 2008.

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