DB schemes’ surplus increases £20.8bn in August

According to figures published on Tuesday by the pensions lifeboat, DB schemes' surplus reached £83.2bn at the end of August, which compares with £62.4bn at the end of July.

The funding ratio of these schemes stood at 104.7 per cent, up from 103.5 per cent registered in the previous months.

Total assets stood at £1.86tn while total liabilities were £1.78tn. There were 2,483 schemes in deficit and 2,835 schemes in surplus.

Vishal Makkar, head of retirement consulting at Buck, noted that the data in August once again showed that the funding position for the DB schemes in the PPF index remains healthy. 

“There might, however, be trouble on the horizon for both scheme members and sponsors later this year," he warned. 

He said: "The planned end of a number of government support schemes, including furlough, is imminent and looks set to coincide with the move into winter that prompted UK-wide lockdowns last year.

"Sponsors in certain sectors may also have concerns about their supply chains, as stories of empty shelves at UK supermarkets and a lack of trained lorry drivers continue to emerge.

“Any impact on funding levels due to changes to sponsor covenants or investment markets may not be felt for some time yet. Still, scheme trustees should use the autumn well to prepare as best they can for any potential impact on their members or sponsors.”