Pension Schemes are Looking Up



Pensions

Pensions

According to the Pension Protection Fund (PPF) latest figures show that pension scheme finances improved in the last month of 2010.

The UK final salary schemes in the private sector saw a move from a deficit of £1bn to a surplus of £22bn.

Suggestions from the PPF indicate that this was due to the 3.4% increase in the value of the schemes assets during December.

The increase of value was moving at a faster rate than the cost of paying for the pensions, which also increased by 1%, leading to the swing from deficit to surplus

“During the month of December there was a 3.4% increase in assets mainly due to rising UK and global equities,” the PPF said.

“However, liabilities also increased by 1% due to the combination of falling index-linked gilts and the time value of liabilities [schemes becoming more mature].”

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