Fully hedged defined benefit (DB) pension scheme funding levels saw a small improvement in November, up from 69.4 per cent at the end of October to 69.5 per cent at the end of November, according to analysis from Broadstone.

Broadstone’s Sirius Index, which monitors how various pension scheme strategies are performing on their journeys to self-sufficiency, revealed that its fully hedged scheme saw a £0.1m reduction in its deficit.

Meanwhile, funding levels for the 50 per cent hedged scheme saw a slight decrease from 101.8 per cent at the end of October to 101.4 per cent at the end of November, with a £0.1m reduction in its surplus.

Overall, the update found “marginal moves” in both its 50 per cent and fully hedged schemes in November despite the aftermath of a “rocky” Autumn Budget and the results of the US election.

Broadstone said these results follow a year that has seen many schemes assessing their endgame options in light of a “buoyant” bulk annuity market and increasing focus on run-on.

Broadstone head of trustee services, Chris Rice, said: “As we move towards the end of 2024, we can reflect on another year of DB schemes actively considering their futures.

“Competition in the bulk annuity market has been strong, innovation has been gathering pace and new players have entered the market to help schemes of all sizes achieve their objectives via a growing number of endgame options.

“Meanwhile the continued funding strength of schemes has re-opened conversations around run-on and surplus extraction and although there was no further comment on this in the recent Mansion House speech, it remains a current issue for trustees and sponsors.”

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