On the go: Defined benefit schemes in the UK are nearing full funding on the Pension Protection Fund's section 179 basis, with an aggregate deficit of £62.8bn at the end of July.
The country's average funding level climbed from 94.9 per cent to 96.3 per cent over the month. Total assets were £1.62bn and total liabilities were £1.68bn.
The funding improvement means the UK's schemes almost have enough assets to secure the capped and reduced member benefits assured by the PPF.
The aggregate deficit on the technical provisions basis used by actuaries to determine contributions is likely to be higher, with the cost of buying out all member benefits more expensive still.
Deficits are significantly smaller than last year, when the PPF universe was 92.9 per cent funded. Since then, steady asset returns have outstripped modest increases in liabilities.
