Pensions - Articles - Continued funding improvements for DB pension schemes

 The Broadstone Sirius Index – a monitor of how various pension scheme strategies are performing on their journeys to self-sufficiency – posts its latest update.

 The Broadstone Sirius Index reports its update for September 2025 with funding improvements across both the fully hedged and 50% hedged Defined Benefit (DB) pension schemes with the asset growth exceeding liability increases from a slight rise in gilt yields.

 The funding level of the fully hedged scheme rose from 71.1% at the end of August to 71.6% at the end of September, with the funding level improving and deficit declining month on month from the end of April. Despite a slight rise in yields the 50% hedged scheme still made progress, increasing from 109.0% at the end of August to 109.7% at the end of September mirroring the five consecutive months of gains.

 Chris Rice, Head of Trustee Services at Broadstone, commented: "Most Defined Benefit pension schemes continued their positive funding level progress in August, with particularly impressive gains made by schemes that are not fully hedged. Since a volatile April, Defined Benefit pension scheme funding has been on a steady positive progression through the summer, leading to good progress in 2025 to date for most schemes. There continues to be economic and political uncertainty and while schemes have weathered this well year to date, upcoming trustee meetings and the forthcoming UK Budget are a good time to check funding progress and look for opportunities to increase resilience.”