The aggregate surplus of DB pension schemes increased to £476bn at the end of September, according to the latest Pension Protection Fund (PPF) 7800 Index.

That’s up slightly from a surplus of £475bn at the end of August.

The funding ratio increased slightly from 148.2% in August to 148.4% in September.

Total assets were £1,458.8bn and and total liabilities were £982.8bn. There were 463 schemes in deficit and 4,587 schemes in surplus.

The deficit of the schemes in deficit at the end of September was £3.6bn, similar to the £3.5bn at the end of August 

Sarah Elwine, actuarial director at consultancy Broadstone, said: “Defined benefit pension scheme funding continues to remain steady as we enter the final few months of the year.

“It sets the foundation for a period of intense activity in the de-risking market especially given the strong pipelines recently stated by insurers through their half-year reporting cycle. The volume of smaller transactions through H1 2024 provides reassurance that for, well-prepared schemes, de-risking is achievable for schemes of all sizes however we still expect a significant number of deals for much larger schemes to be announced in the last quarter of the year.

She said that with another new entrant joining the bulk annuity market last week, trustees now have even more available options.

Alex Oakley, BPA transaction manager, at Standard Life, part of Phoenix Group, said: “Despite recent economic headwinds, including the Bank of England's decision to maintain interest rates amid persistent inflationary pressures, the aggregate surplus of DB pension schemes has remained robust. This continued period of funding stability has provided schemes with the opportunity to develop comprehensive endgame strategies, focusing on long-term planning and funding sustainability.

“Well-funded schemes continue to develop solid foundations which will prove essential when seizing endgame opportunities and all of this contributes to a positive picture for the de-risking market in 2024.”