THE funding position of the UK’s biggest defined benefit pension schemes improved significantly during March, new figures show.

May 2 2009 Huddersfield Daily Examiner

The shortfall faced by the 200 largest schemes eased from £36bn at the end of March to just £8bn, said Aon Consulting.

But Aon said the method used to calculate a pension scheme’s position for company accounts was distorting the true picture.

On a funding basis, the 200 biggest defined benefit schemes faced a deficit of £130bn.

The difference arises because the pension scheme liabilities be disclosed in company accounts assume investment returns will be in line with yields on corporate bonds – which has soared since the credit crunch first struck.