January sees drop in UK pension deficit, PwC’s Skyval Index shows

Jan 31, 2019

New figures released today from PwC’s Skyval Index show the deficit of defined benefit (DB) pension funds stood at £210bn at the end of January 2019, a decrease of £80bn in the deficit compared to the previous month end.

PwC’s Skyval Index, based on the Skyval platform used by pension funds, provides an aggregate health check of the UK’s c.5,450 corporate DB pension funds.  The current Skyval Index figures, based on the 'gilts plus' method widely used by scheme actuaries, are:

 

Assets

Liability target   

Deficit

£1,590bn   

£1,800bn

£210bn

 

Steven Dicker, PwC’s chief actuary, said:  

“January has seen a significant improvement in the funding level of the UK pension schemes. The reduction in the deficit is largely attributed to the adoption of a new dataset - as published in the 2018 PPF Purple Book, which shows the number of defined benefit schemes has reduced to 5,450. Positive asset performance over the month also helped to boost the funding level."

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