Fully-hedged defined benefit (DB) schemes continued to provide low volatility funding in July, according to the Broadstone Sirius Index on self-sufficiency funding.

Its funding position remained at 69.9 per cent, almost no change on June’s 69.5 per cent.

While the figures are stable, funding has fallen slightly compared with the 70.8 per cent seen at the end of 2022.

Broadstone head of policy, David Brooks, said the steady figures showed that “things are calming down” in the world of DB schemes.

The index showed that the 50 per cent hedged scheme remained strong at 97.8 per cent, having edged up with a 0.7 per cent improvement in funding levels.

Its funding position is slightly more robust than at the end of 2022, when the level stood at 95.4 per cent.

"Pension funding conversations with trustees and sponsors are not meant to be exciting, and our experience over the last few months has shown that things are calming down,” said Brooks.

“The rhetoric from government to find ways to increase risk in DB pension schemes, should be understood in the context that not all schemes are fully funded on a buy-out basis.

“Funding has improved, but for many schemes there is some way to go until their members’ benefits are secure.

"Employers are still on the hook for millions of pounds in buyout deficits and understanding and controlling the risks they’re exposed remains paramount.”

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