U.K. pension plans are showing tracking upward, according to Mercer’s Pension Risk Survey data.
The new data show that the accounting deficit of U.K. DB pension plans reduced over the month of February, with the estimated aggregate IAS19 deficit for plans at FTSE350 companies, stood at £68 billion (equivalent to a funding ratio of 89%). This is up slightly from January’s 88% funding ratio.
Asset values increased from £535 billion at the end of January to £544 billion as of the end of February.
“The strong rally in equity markets over the last two months has finally resulted in the first reduction in deficit month-on-month since September 2012,” says Ali Tayyebi, head of DB risk with Mercer in the U.K. “The position at the end of February does, however, mask volatility in the position over the month, reflecting the persistent financial uncertainty affecting much of the globe.”