Defined benefit (DB) pension scheme funding levels have remained at record highs, with the aggregate surplus of the 4,838 schemes in the Pension Protection Fund’s (PPF) 7800 Index rising by £2.1bn in December 2025 to £259.7bn.

The latest update to the index, which reflected the scheme valuation data submitted to The Pensions Regulator as part of the schemes’ annual returns, showed the overall funding ratio edging up from 129.9 per cent to 130.2 per cent.

Total scheme assets rose to £1,120.6bn over the month, while liabilities also increased slightly to £860.9bn, from £860.4bn in November.

Meanwhile, the total deficit across schemes still in deficit fell by £0.4bn to £18.9bn, with the number of schemes in the PPF-eligible universe unchanged at 4,838.

Commenting on the update, PPF chief actuary, Shalin Bhagwan, said the funding position of the PPF-eligible universe saw “little change” during December, reflecting relatively flat global equity markets and a marginal rise in long-dated gilt yields.

“Though small, the changes seen were positive, with the estimated aggregate funding position increasing by £2.1bn to £259.7bn and the funding ratio rising by 0.3 percentage points to 130.2 per cent,” he continued.

Bhagwan added that the longer-term trend pointed to a more pronounced strengthening in scheme funding, noting that the funding ratio stood at 125.7 per cent in December 2024 - around 4.5 percentage points lower than at the end of 2025.

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