Deficits of all UK private sector DB pension schemes increased from £93bn to £110bn from 30 November 2011 to 31 October 2012, JLT Pension Capital Strategies (PCS) has revealed.

Despite assets increasing from £986bn to £1,075bn in this period, liabilities also increased from £1,079bn to £1,185bn. However, the funding level remained constant at 91 per cent.

JLT Pension Capital Strategies managing director Charles Cowling said: “The DWP’s paper on "Reinvigorating workplace pensions" includes a number of interesting ideas particularly around improving outcomes in DC schemes, all of which we welcome. However, in the current economic environment we do not see many employers wanting to increase their pension risks. The reality is simply that there is very little appetite from employers for risk sharing in DB schemes.

“As such, we believe, and we expect, the rapid decline of DB schemes in the UK to continue. Nevertheless as the above figures show, there is still a huge legacy of DB liabilities across UK plc which is going to require very careful management for many years to come.”

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