Pension funds deficits 'drop by £100bn in 50 months'
Aon Consulting has announced that over the past 50 months, around £100bn has been "wiped off" the deficits of pension funds.
These deficits are now at £4bn, their lowest month-end level, while almost half of the largest 200 funds in the UK are currently showing a surplus.
The financial consulting firm attributes this improvement in deficit levels to rises in bond yields and equity markets.
Marcus Hurd, senior consultant and actuary at the company, said: "The era of the pension scheme accounting surplus has clearly begun."
He added that companies must consider the option of targeting fully-secured pension benefits with insurance companies, while also assessing their ability to recognise these surpluses in their business accounts.
In February 2007, the National Association of Pension Funds reported that a third of defined benefit pension schemes in the private sector have remained open to new employees.
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