The deficit of the defined benefit (DB) pension schemes of the UK's 350 largest listed companies fell by £1bn in February, according to data from Mercer.
The consultancy firm found the pension shortfall of FTSE 350 firms stood at £72bn last month.
Combined with January’s fall of £3bn, the first two months of 2018 have already seen half the decline witnessed in 2017.
The reduction was driven by rising corporate bond yields, which reduced pension schemes’ liabilities, but this was partially offset by an increase in market implied inflation.
At the end of February, liability values had fallen by £7bn to £837bn, while asset values were down by £6bn to £765bn.
Alan Baker, partner and chairman of the DB policy group at Mercer, said: "2018 has started where 2017 left off, with a reduction in the pension gap and good news for UK businesses.
"Underlying the good headline news, February actually saw significant fluctuations, and this demonstrates the importance of trustees and sponsors understanding the overall level of risk facing their pension scheme.
"Trustees and sponsors should put in place the necessary steps to mitigate against future volatility and ensure any potential downside is in line with their risk appetite. They should also make sure the right governance is in place to allow them to respond and react in time."
JLT Employee Benefits also published its figures on scheme deficits this week.
According to the firm, the pension shortfall of FTSE 350 companies decreased by £12bn, standing at £32bn at the end of February.
maria.espadinha@ft.com
