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UK pension schemes record surplus

The UK private sector's pension schemes have recorded a surplus for the first time since June 2008.

The latest data from the Pension Protection Fund (PPF) shows that all the schemes witnessed growth last month, with the aggregate funding position moving to show a small surplus.

The PPF, which calculated the likely cost of paying for pensions in the future, said the 7,400 pension schemes had a collective surplus of £0.3bn in March. This is an increase from the deficit of £15bn in February.

Although there was improvement overall, about 68.5 per cent or 5,032 schemes are still in the red, with just 31.5 per cent or 2,310 in surplus.

The PPF attributed the improvement in funding to a variety of factors, but mainly to strong gains in the UK and global equities markets.

A change in the way the PPF calculated data as well as rising share prices also helped revise the asset values upward while revising liabilities downward.