Several UK-listed companies' financial updates have shown a continued trend towards defined benefit (DB) pension de-risking strategies.

In March 2024, Premier Foods plc suspended its DB deficit contributions, which had historically absorbed a substantial share of its free cash flow.

This marked a step in a wider de-risking strategy that includes the full merger of its DB schemes and the removal of a dividend matching mechanism.

The company said it also remains on track to fully resolve its pension arrangements by the end of 2026.

The group's DB scheme reported a surplus of £648.7m as of 29 March 2025, a year-on-year increase of £47.2m, as a 9.9 per cent fall in asset values due to falling government bond prices was more than offset by a £399.4m (13.5 per cent) fall in liabilities.

Final deficit contributions of £2.7m were made in March before the suspension.

Premier Foods plc chief executive officer, Alex Whitehouse, said: “We are one step further towards the full resolution of the pension scheme and with the removal of the dividend match we are stepping up our distribution to shareholders this year with a 62 per cent increase in the dividend."

In addition to this, 3i Group plc revealed that it had completed the full buyout of its UK DB pension scheme for the year ending on 31 March 2025.

The remaining scheme assets are surplus funds not required for the transaction, minus expected wind-up costs.

Greencore Group plc's also confirmed that it expects its UK DB scheme to achieve a fully funded position on a triennial basis by the end of September 2025. At that point, annual contributions of £9.8m will cease.

The group made pension contributions totalling £6.9m for the half-year to 28 March 2025, and the net pension deficit before deferred tax stood at £11.2m, £3.6m lower than on 27 September 2024.

After tax, the deficit was £7.2m, comprised of a £16m shortfall in UK schemes and an £8.8m surplus in Irish schemes.

The company attributed the improvement to actuarial gains from changes in financial assumptions, particularly on Irish schemes, partially offset by contributions to the UK scheme.

The report also showed that the scheme is now fully hedged against movements in gilt yields, reducing the company’s risk exposure.

Greencore also confirmed it is reviewing all of its pension schemes for further restructuring opportunities.

Additionally, National Grid reported a year-on-year increase in its net DB pension assets, which rose to £1.916bn as of 31 March 2025 from £1.814bn the previous year.

The increase was driven by reductions in liabilities because of changes in financial assumptions in both the UK and the US, partially offset by declines in gross asset values.

United Utilities also posted an improved pensions position in its full-year results.

The company recorded a net pension surplus of £302m as of 31 March 2025, up from £268m a year earlier.

This £34m increase was mainly due to £19m in remeasurement gains, as a higher discount rate assumption and revised demographic expectations following the triennial valuation reduced DB obligations more than scheme asset values.

The group also reported a 5.7 per cent per annum increase in pension payments in 2025, compared with 4.8 per cent in 2024.

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