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UK Final Salary Schemes’ Deficits Rise in March

The aggregate deficit for the UK’s 6,316 private sector final salary schemes (also known as defined benefit schemes) rose to £236.6 billion at the end of March 2013, according to the UK’s Pension Protection Fund (the “PPF”). This is an increase of £35.1 billion since February 2013. The funding ratio (being the ratio of assets vs. liabilities) of these final salary schemes decreased from 84.6% in February 2013 to 82.6% in March 2013. The PPF analysis also notes that 5,080 UK schemes were in deficit at the end of March whereas only 1,236 schemes were in surplus.

These figures have increased since the same time last year when the deficit stood at £204 billion. However, the highest deficit level so far recorded by the PPF was in May 2012 when it reached £317 billion.