Typical scheme can expect to fund 98.8% of accrued benefits
Schemes can expect to fund 98.5% of the accrued benefits
The health of UK DB schemes has steadily improved since the start of Covid-19
UK DB funding levels improve during pandemic but sponsor health remains top concern
The health of the UK’s defined benefit (DB) pension schemes has surpassed that of their pre-Covid levels as they continued to recover through final quarter of 2020, Legal & General Investment Management (LGIM) research reveals.
The economic crisis provoked by Covid-19 led to a 5.1 percentage point fall in the average defined benefit (DB) funding position in the first three months of 2020, according to Legal & General Investment Management (LGIM).
A typical defined benefit (DB) scheme was able to meet 93.7% of its accrued pension rights as of 30 September this year, according to Legal & General Investment Management (LGIM).
The combined funding level of the UK's 5,450 defined benefit (DB) schemes increased by 60 basis points (bps) over January, latest Pension Protection Fund (PPF) data reveals.