Pension scheme funding levels improves in May as surpluses grow – Broadstone

Defined benefit (DB) pension scheme funding improved in May 2025, according to the latest Sirius Index from Broadstone. 

The index showed that equity markets recovered some earlier losses and long-term interest rate expectations rose, even though short-term rates were cut.

Both fully hedged and partially hedged schemes saw their funding positions improve. 

The fully hedged scheme’s funding level was up 0.2% with a £0.2m drop in deficit. 

Additionally, data showed that the 50% hedged scheme performed better, with its funding level rising from 103.6% to 105.8% and a £0.5m increase in surplus.

Chris Rice, head of trustee services at Broadstone, said: “While markets continue to be volatile, DB pension scheme funding continues to hold steady. 

“May was particularly encouraging, with a funding improvement realised whether the scheme was fully hedged or not.

“The growth in the surplus on a low dependency basis comes just as more detail is published on the potential for surplus release via the Pension Schemes Bill, with the rules around extraction set to be eased.”