December saw defined benefit (DB) funding levels remain broadly stable, Broadstone’s Sirius Index has revealed, rounding off a positive year for most schemes.

The latest update showed both modelled schemes ended December in a similar position to where they started the month, while also recording improvements over the course of 2025.

This follows a slight dip in November, when both of the index’s modelled schemes slipped back by similar margins amid Budget announcements.

The fully hedged scheme saw its funding level dip marginally, from 71.7 per cent at the end of November to 71.6 per cent at the end of December.

Meanwhile, the 50 per cent hedged scheme saw no change over the month, with its funding level holding steady at 108.4 per cent.

Despite month-on-month stability, both strategies made positive progress across 2025, reflecting a resilient year for DB funding levels amid ongoing economic uncertainty.

Broadstone head of trustee services, Christopher Rice, stressed that the overall picture for schemes was encouraging, given the challenges faced during the year.

“With a year including an economic shock from US tariff announcements, and concern over the UK’s economic prospects, particularly in the run-up to November’s Budget, it is encouraging that most DB schemes will have improved their funding positions over 2025,” he continued.

Rice added that regulatory developments would increasingly shape trustee priorities over the coming years, as schemes prepare for their long-term objectives.

“Discussions over the new Funding Code are either well advanced, or due to be commenced in 2026 or 2027, so attention will be turning to the journey plan to end game solution,” he said.

Looking ahead, Rice highlighted the growing range of options available to trustees as market conditions evolve.

“With expectations of another year of a buoyant risk transfer market and emerging run-on and consolidator solutions, there are a range of appealing endgame solutions to target and strategies to get there,” he concluded.

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