11 October 2011
The Pension Protection Fund produces a monthly index update (the October release has data taken as at 31 September) of the estimated funding position of the DB schemes potentially eligible for entry into the Fund.
Total scheme deficits showed an increase from £117.5bn as at end August to £196.4bn as at end September : an almost doubling, though it is inevitable that this figure will be volatile (being the difference between two much bigger numbers: assets vs liabilities). The PPF universe aggregate funding ratio continued to fall from 89.2% to 83.1%.
The fall in funding levels has again occurred both due to a decrease in asset levels and an increase in the assessed value of liabilities, though the impact of the most recent market events (last week’s QE2 announcement and ongoing Euro sovereign discussion) will not be included until next month.