The deficit among the 6,150 UK defined benefit (DB) pension schemes has decreased over the month of September by £3.5bn (€4.4bn) according to figures from the Pension Protection Fund (PPF).

The deficit calculation is done on an s179 basis – which assess the funding ability of DB schemes to provide PPF-level benefits – showed the aggregate level to be £166.5bn at the end of September.

This left 4,600 schemes in deficit and 1,550 in surplus.

However, the position from September 2013 has almost doubled, when the deficit was £85bn.

The PPF said the main cause of the deficit reduction was an 8 basis point rise in the yield of 15-year UK Gilts, which overshadowed a fall in assets caused by declining equity markets.

In other news, Ofcom, the regulator for the UK’s communications and media industry, has completed its fifth buy-in transaction with Legal & General (L&G), the latest covering around £50m of liabilities for 350 members.

The scheme’s total insured liabilities, all with L&G, have now reached £250m.

Rodney Jagelman, chair of the trustee board, said L&G provided attractive terms and that the latest arrangement took the scheme a significant step closer to full buyout.

Ofcom finance director Alastair Smith added: “This is a very significant step. Members benefit from having their benefits secured on top of the security that continues to be provided by the plan – and Ofcom is no longer exposed to the uncertainty of asset returns, interest, inflation and longevity risk.”

Elsewhere, consultancy Aon Hewitt has launched delegated solutions for defined contribution (DC) schemes, in a partnership with BlackRock’s investment solution.

The company will now offer employers and DC schemes a range of in-house target-date funds.

Schemes would choose the strategy and flight plan, leaving Aon to implementation.

BlackRock will provide the investment structure behind Aon’s offering.

Andy Cox, chief executive at Aon Hewitt in Europe, said: “Creating better DC has been a key aim for us for some time. That means delivering a more effective investment approach, capable of greater speed of action.

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