The aggregate surplus of defined benefit (DB) schemes in the UK increased by £2.3bn in August 2026 to £273.6bn, the latest data from the Pension Protection Fund (PPF) has shown.

The PPF’s 7800 Index revealed that the aggregate funding ratio rose by 0.4 percentage points during the month, increasing from 133 per cent in July to 133.4 per cent.

Total DB scheme assets fell by £1bn (0.1 per cent) in August, declining from £1,093.3bn to £1,092.3bn over the month.

However, this was more than offset by reduced scheme liabilities, which fell by £3.3bn (0.4 per cent) from £822bn to £818.7bn during the same period.

The aggregate deficit of schemes in deficit fell by £0.1bn, from £21.6bn to £21.5bn in August 2026.

Meanwhile, the number of schemes in surplus increased by 17 to 3,838, meaning 79 per cent in the PPF-eligible universe were in surplus.

PPF’s index provides the latest estimated funding position, on a section 179 basis, for the DB pension schemes potentially eligible for entry to the PPF, which total 4,838 schemes.

PPF acting chief actuary, Aaran Pang, said the movements in assets and liabilities across the PPF-eligible universe were relatively modest.

“Asset values edged down by 0.1 per cent, while liability values fell by 0.4 per cent, resulting in a slight improvement in overall funding,” he continued.

“The aggregate surplus increased to £273.6bn and the funding ratio rose to 133.4 per cent, reflecting the continued resilience of DB scheme funding levels despite ongoing market uncertainty.”

Broadstone senior actuarial director, Jaime Norman, added: “Pension scheme funding is continuing to weather persistent volatility, with funding ratios nudging up thanks to resilient equity market performance.

“With the UK bond market seeing continued turbulence of late and tensions in the Middle East appearing to be a long way from resolution, trustees will be considering the implications of future interest rate calls and preparing their investment strategies for the potential of further market movements.

“The de-risking market remains extremely competitive but many schemes will still be looking to capitalise on funding levels to secure member benefits through the insurance market.

“With a growing number of options available to trustees, however, it will be important to consider all endgame options, particularly around the use of surplus, which could promote the advantages of schemes to run on.”

Gallagher managing director, Vishal Makkar, said the surplus rise came at an important moment for the pensions sector, as the government’s consultation to give well-funded DB schemes greater flexibility to release surplus has “laid the groundwork for a new paradigm”.

“The overall guidelines are still taking shape, and it is possible the final iteration of the guidance will be more streamlined,” he stated.

“In the interim, it's important that trustees continue to pursue their scheme's long-term objectives.

“For some schemes, a strong surplus may be a catalyst to explore their options in the buyout market.

“For others, particularly those with strong governance and sponsor support, retaining the scheme and taking a longer-term approach could offer greater scope to respond to changing circumstances and investment opportunities.”

This article originally appeared in our sister publication Pensions Age.

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