Pension scheme funding holds firm despite volatile May – Broadstone

Broadstone has published its Sirius Index update for May, showing steady pension scheme funding despite market volatility. 

The growth focused scheme saw funding rise from 91.7% at the end of April to 92.2% at the end of May, with a 1.7% difference in the maximum and minimum funding levels during the month. 

The matching focused scheme fell slightly from 89.7% to 89.4%, with a 0.9% difference in maximum and minimum funding levels.

Chris Rice, head of trustee services at Broadstone, said: “Pension schemes largely held their funding positions throughout May. 

“The higher growth asset exposure performed better but this was accompanied by funding level volatility.

“This is all well and good when growth assets are performing well.”

Rice added: “In the face of global political and economic uncertainty, however, this could quickly reverse and trustees should consider whether their employer covenant supports this exposure.

“It also raises the questions of surplus erosion if conditions reverse with surplus maintenance becoming an increasingly important challenge for trustees.”