Aggregate scheme funding improved by £60.1bn (US$97.1bn) in December 2009, latest figures from the Pension Protection Fund revealed.
The lifeboat fund's PPF7800 index - which tracks the performance of nearly 7,400 schemes - said the improvement meant the total deficit in UK pension funds had fallen to £32.6bn at the end of December last year.
This compares to a deficit of £92.5bn at the end of November last year - and a shortfall of £190.6bn at the end of 2008.
The PPF said the total deficit of schemes in deficit in December is estimated to have improved to £90.7bn from £132.9bn at the end of November.
In December 2008, the aggregate deficit of all schemes in deficit stood at £208.7bn.
It added the total surpluses of schemes in surplus increased to £58.1bn from £40.4bn at the end of November 2009 and £18.1bn at the end of December 2008.
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