The total deficit and funding positions of the UK's defined benefit (DB) pension schemes worsened in May, according to the Pension Protection Fund (PPF).
The PPF estimates the aggregate funding position of over 7,300 DB funds worsened to a deficit of £41.5bn at the end of May, compared to just £2.2bn at the end of April.
Additionally, the total deficit of those schemes in the red last month increased to £98.4bn - compared to £74.4bn at the end of April.
The PPF attributes the deteriorating position of DB schemes to wider market forces, with assets decreasing 2.7% due to falling UK and global equities. The month saw the FTSE All Share Index slide 6.6%.
However, the funding position of schemes is better than a year ago - in May 2009 the aggregate deficit of all schemes in the red was £196.8bn. Over the year to May 2010, the FTSE All Share rose by 18.7% and 15-year gilt yields were down 13 basis points.
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