The Broadstone Sirius Index shows improved funding across both the fully hedged and 50 per cent hedged DB pension scheme amid positive returns from growth assets for July.
The fully hedged scheme rose from 70.3 per cent at the end of June to 70.9 per cent at the end of July, with the deficit falling to its lowest level since tracking started at the beginning of 2022.
Meanwhile, the 50 per cent hedged scheme saw larger increases from 106.2 per cent at the end of June to 107.2 per cent at the end of July. The surplus also reached record highs during July suggesting buy-out would be a real possibility for this scheme.
Broadstone head of trustee services Chris Rice says: “Defined Benefit pension schemes have continued to progress their funding positively during July in the face of global market uncertainty.
“With bulk annuity insurers PIC and Just changing ownership during the month, combined with last month’s potential resolution to Section 37 issues and further funding improvements, more schemes will now be thinking again about the suitability of a de-risking transaction.
“Conversely, the continued improvement and resilience in defined benefit scheme funding, added to the recent consultation about surplus use, is causing many schemes to consider all future end game options.”