The Broadstone Sirius Index’s September update reports that its 50 per cent hedged pension scheme reached full funding at 100.3 per cent, up from 99.6 per cent in August.
The fully hedged scheme also improved, increasing from 69.1 per cent to 69.5 per cent. Both schemes reduced their deficit by around £0.2 million, with the half-hedged scheme achieving a surplus for the first time.
This follows a year in which the market for smaller pension schemes saw unprecedented activity and transactions.
Broadstone head of trustee services Chris Rice says: “When we started the index with a half hedged scheme that was 80 per cent funded at the start of 2022, the idea it would be nudging towards full self-sufficiency funding throughout 2024 and now reaching it would have been considered relatively unlikely.
“Achieving this milestone at the end of September highlights the tricky decisions many schemes now face in the wake of funding improvements. Insurance remains attractive and the high number of deals completed so far this year provides reassurance a transaction is achievable.
“Headwinds remain however, with a view that for the second half of this year smaller schemes might be overlooked by some very large deals, as well as the benefit uncertainty created by the Section 37 / Virgin Media case.
“This uncertainty suggests an opportune time for schemes to consider the options available to them, but for those who are determined to insure, the opportunity to transact will present itself for well prepared schemes.”
