The aggregate funding position of UK defined benefit pension funds potentially eligible for entry to the country’s Pension Protection Fund fell £13bn last month to £202.5bn, a funding ratio of 122.8%. In March, the aggregate surplus was $215.5bn and the funding ratio 124.7%.
“Market volatility ratcheted up during April thanks to a string of announcements from the US regarding tariffs and broader trade policy. This increased uncertainty drove a flight-to-safety in global markets with bonds performing better than risky assets like equities. In the UK, 10-year fixed-interest yields were down by some 24 basis points across the month, while 15-year fixed-interest yields fell by 15 basis points,” said Shalin Bhagwan, PPF Chief Actuary.
“This contributed to an increase in liabilities and meant that the aggregate surplus fell for a third month in a row –, down an estimated £13.0bn, from £215.5bn to £202.5bn. Meanwhile, the funding ratio fell by 1.9 percentage points to 122.8%,” Bhagwan added.
