Aggregate DB surplus increases to £273.7bn in February

The March 2026 update of the index showed the funding ratio of the 4,838 DB schemes in the index was130.8% at 28 February, a 0.2 percentage point decrease on the previous month.

Total scheme assets increase 3.4% to £1,161bn, while liabilities increased 3.5% to £887.6bn.

PPF chief actuary Shalin Bhagwan said: "The aggregate surplus rose by £8.1bn to £273.7bn in February. There were positive returns on all asset classes, causing aggregate assets to rise by over 3%, and the corresponding reduction in gilt yields caused liabilities to rise by a similar percentage.

"Early March has brought renewed volatility as geopolitical developments affect inflation expectations and interest‑rate outlooks, underlining that funding levels remain sensitive to market conditions even as they continue to show resilience."

Source: PPF

Gallagher managing director of UK wealth consulting Vishal Makkar said schemes "stood their ground", with "healthy" funding levels despite economic shocks and "policy uncertainty".

He said: "As the Pensions Schemes Bill closes in on receiving its final Royal Assent, trustees must keep a close eye on regulatory reforms and build new compliance strategies as necessary. But the macroeconomic level is also important. Shifting gilt yields could reduce liability values and improve funding for DB schemes, creating new opportunities for investment. In any event, a measured managerial style will be key to ensuring that long-term member outcomes remain the priority."

Broadstone actuarial director Sarah Elwine added the index shows a continued "positive start" for schemes this year, "building on the momentum" from last year's improved funding.

However, she said recent geopolitical events mean "significant volatility and uncertainty have returned for trustees" since then.

Elwine said: "There will be less concern for trustees of schemes where the investment strategy is already fully matched but for other schemes there may be short term fluctuations in funding levels depending on how assets are invested.

"Schemes that were considering strategy changes or a review into their investment strategy may now hold fire in the hope that any market turbulence will be relatively short-lived."

Standard Life managing director for pensions risk transfer and individual retirement Claire Altman said the index's March updated highlighted the strength of UK DB schemes despite recent volatility.

She also pointed to latest modelling from The Pensions Regulator, which showed most schemes will be able to buyout within the next decade.

Altman explained: "Against that backdrop, it's clear that DB schemes have moved into a new era, less focused on deficit repair and more on long term strategic decision‑ making.

"Trustees now face significant choices around buyout, consolidation, or running on to make productive use of surplus, and will be focused on striking the right balance to secure member benefits while navigating the risks and opportunities of run-on."