In analysis underpinning its annual funding
statement published on April 27, 2023, the Regulator notes that
most schemes are likely to have improved their funding levels. This
year's funding statement covered DB schemes with valuation
dates between September 22, 2022, and September 21, 2023 (known as
Tranche 18 or T18 schemes). Within the T18 category, the Regulator
found that most schemes have specific valuation dates of either
December 31, 2022, or March 31, 2023.
The analysis shows that the major asset classes invested in by
DB pension funds experienced a wide variety of returns over the
three years to December 31, 2022, or March 31, 2023. Improvements
to funding levels have chiefly arisen through a combination of
investment out-performance from return-seeking assets and a
significant rise in gilt yields, with the majority now being in
surplus. That said, the position for individual schemes is likely
to vary greatly. It will depend on factors including
