Pension scheme surpluses up in February, volatility remains – PPF

Pension scheme funding improved in February, with the Pension Protection Fund (PPF) 7800 index showing the aggregate surplus rose by £8.1bn to £273.7bn. 

Assets increased by 3.4% to £1,161.3bn, while liabilities went up by 3.5% to £887.6bn. 

The funding ratio slipped slightly to 130.8%, while the number of schemes stood at 4,838. 

The deficit of schemes in deficit dropped by £1.0bn to £17.4bn.

Shalin Bhagwan, chief actuary at the PPF, said: “The aggregate surplus rose by £8.1 billion to £273.7 billion in February. 

“There were positive returns on all asset classes, causing aggregate assets to rise by over 3 per cent, and the corresponding reduction in gilt yields caused liabilities to rise by a similar percentage. 

“Early March has brought renewed volatility as geopolitical developments affect inflation expectations and interest‑rate outlooks, underlining that funding levels remain sensitive to market conditions even as they continue to show resilience.”

Sarah Elwine, actuarial director at Broadstone, said: “Pension schemes continued their positive start to the year, building on the momentum through 2025, to record further improvements to their funding position in February.