The Broadstone Sirius Index shows funding improvements across both the fully hedged and 50 per cent hedged DB pension schemes, with the asset growth exceeding liability increases from a slight rise in gilt yields for September.
According to the index, the funding level of the fully hedged scheme rose from 71.1 per cent at the end of August to 71.6 per cent at the end of September, with the funding level improving and the deficit declining month on month from the end of April.
Funding gains for the 50 per cent hedged scheme still made progress despite a slight rise in yields, increasing from 109.0 per cent at the end of August to 109.7 per cent at the end of September, mirroring the five consecutive months of gains.
Broadstone head of trustee services Chris Rice says: “Most Defined Benefit pension schemes continued their positive funding level progress in August, with particularly impressive gains made by schemes that are not fully hedged. Since a volatile April, Defined Benefit pension scheme funding has been on a steady positive progression through the summer, leading to good progress in 2025 to date for most schemes.
“There continues to be economic and political uncertainty and while schemes have weathered this well year to date, upcoming trustee meetings and the forthcoming UK Budget are a good time to check funding progress and look for opportunities to increase resilience.”