Kier Group cut the aggregate deficit of its defined benefit (DB) schemes by £43m over 2016, according to its latest annual results.
Across the schemes, the deficit figure stood at £67.8m on the IAS 19 accounting measure on 31 December 2016, compared to £110.5m at the end of 2015. Combined assets totalled £1.65bn, plus £14m of deferred tax, while liabilities stood at £1.73bn.
The schemes now have a combined funding level of 96%.
The company's schemes are the Kier Group Pension Scheme, the Mouchel Pension Schemes, and the May Gurney Pension Schemes.
The improvement was largely driven by changes in the Kier scheme, which saw a deficit reduction of 70% over the twelve months. At the end of 2015, it had a £56.4m deficit, but this now totals just £17m.
The Mouchel schemes' deficit fell from £51.8m to £46.3m, while the May Gurney schemes' deficit worsened from £2.3m to £4.5m.
A Kier spokesperson said hedging had protected the scheme from market volatility.
"Kier has worked with the trustees of its pension schemes to put in place prudent hedging instruments whilst not significantly affecting investment return," they said. "This has protected the funding of the schemes against recent market volatility.
"This, added to the strength of the covenant of the sponsor of the schemes, have enabled us to manage our pension scheme deficits effectively".
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