Value of DB plans rises by 5%

The portfolio value of UK defined benefit (DB) pension plans rose by 5% in the second quarter of 2003. However, over the first six months of the year, it is still down by 5%, according to a study by actuarial consultant Towers Perrin. The study, which used market-based assumptions for scheme liabilities, asset returns, and currency movements, found the average UK DB plan benefited from an improvement in equity markets during the quarter, while the bond market remained relatively stable. A 15 basis point fall in corporate bond yields during the quarter resulted in a similar fall in the b...