Private sector DB schemes have showcased resilience with a mere 3 per cent decline in market value from Q3 to Q4 amid market turbulence, according to an Office for National Statistics (ONS), report.
The figures revealed that the total value decreased from £1.269 trillion to £1.230 trillion.
According to statistics from regulators and the Pension Protection Fund (PPF), the general health of DB schemes continues to be extremely solid across a variety of measures.
A historic aggregate surplus of £430bn for DB schemes is highlighted by the PPF metric, which contrasts sharply with the shortfalls of more than £400bn experienced just seven years ago.
Additionally, according to the Pensions Regulator (TPR), when compared to the responsible “technical provisions” baseline used by the Regulator, about three-quarters of DB schemes show surpluses.
LCP (Lane Clark & Peacock) identified a total surplus of around £70 billion in the most recent accounts after analysing the accounts of the FTSE 100 businesses, an increase of £10bn from the prior year.
According to LCP about three-quarters of schemes have seen their funding positions improve over the past year.
LCP partner Steve Webb says: “DB pension schemes have emerged from the turmoil of the last 12 months in remarkably good shape.
“The latest ONS figures show only a very modest fall in the value of schemes between Q3 and Q4 last year, which can be set against the huge improvements in scheme funding which we have seen in recent years.
“This shows the robustness of DB pensions and their underlying financial management, which is particularly remarkable given the turmoil all around”.
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