DB schemes hit record health high - LGIM

Schemes expect to fund 98.5% of accrued benefits

Martin Richmond
clock • 1 min read

The health of defined benefit (DB) schemes continued to climb in the first quarter of 2022, hitting an all-time high, according to data from Legal & General Investment Management (LGIM).

According to research compiled by LGIM's DB health tracker, a DB scheme should expect to be able to fund a total of 98.5% of the scheme's accrued benefits, as of 31 March 2022. This marks a 0.1% increase in the health of DB schemes reported in Q4 of 2021 and represents the highest figure that's been recorded since LGIM began tracking the health of DB schemes in 2018. The analysis is based on the Pension Protection Fund's Purple Book assumption that a typical DB scheme holds approximately 70% in bonds/liability-driven investments, 20% in equities, 5% in property and 5% in other assets....

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