Jessica O'ConnorFunding levels for most defined benefit (DB) pension schemes remained stable in December, capping a broadly positive year for schemes, according to the latest update from the Broadstone Sirius Index.
The Index, which tracks how different DB pension scheme strategies are progressing towards self-sufficiency, shows both of its modelled schemes ending December in almost the same position as at the start of the month, while still recording overall improvements across 2025.
The fully hedged scheme saw a marginal fall in funding over December, with its funding level dipping slightly from 71.7% at the end of November to 71.6% by the end of December.
Meanwhile, the 50% hedged scheme remained unchanged month-on-month, holding steady at a funding level of 108.4%.
Despite the flat end to the year, both schemes made positive progress over the course of 2025, reflecting the resilience of DB funding positions through a year marked by economic uncertainty.
Christopher Rice, head of trustee services at Broadstone, said: “With a year including an economic shock from US tariff announcements, and concern over the UK’s economic prospects, particularly in the run up to November’s budget, it is encouraging that most defined benefit schemes will have improved their funding positions over 2025.
“Discussions over the new Funding Code are either well advanced, or due to be commenced in 2026 or 2027 so attention will be turning to the journey plan to end game solution.
“With expectations of another year of a buoyant risk transfer market and emerging run on and consolidator solutions, there are a range of appealing end game solutions to target and strategies to get there.”
