From The BBC:
A sharp cut has been reported in the deficit of final salary pension schemes in the private sector, figures show.The deficit was reduced from £51.9bn at the end of January to £15.1bn at the end of February, the Pension Protection Fund said. The value of pension funds can be volatile especially on a month-by-month basis. But the 7,400 schemes covered by the scheme were in a stronger position than a year ago. At the end of February 2009, the deficit stood at £204.7bn. Stock marketThe healthier position for pension funds has been led by the improving picture with shares and gilt yields.
“During the month of February there was a 2.5% increase in assets due to rising UK and global equities,” the PPF said. At the same time, improved yields on government bonds meant that the cost of paying for pensions fell by 2%. A change in actuarial assumptions in October 2009 also reduced the estimated liabilities of schemes by around £70bn during the past year. “Funding positions…
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