FTSE350 companies saw their defined benefit (DB) schemes deficits increase by £2bn in August to £34bn, the second consecutive month with a rise.
It follows a £3bn increase in the shortfall of these pension funds in July, according to the data from Mercer.
But the deficit of these schemes has more than halved since the start of 2018.
Mercer’s Pensions Risk Survey data showed the funding lever of FTSE350 companies schemes remained at 96 per cent.
Alan Baker, head of DB solutions development and partner at Mercer, said the minor deterioration in funded status only partially offset the huge reduction in the deficit so far this year.
He said: "However, this is the second consecutive month that the gains made this year have been reversed.
"It is important that trustees who run pension schemes should continue to assess how much risk they need to take now to meet their funding requirements."
Liability values increased from £826bn to £829bn, due to a fall in corporate bond yields, which was partially offset by a fall in market inflation expectation.
Meanwhile asset values increased slightly by £1bn, from £794bn to £795bn, the consultancy firm said.
Maria Johannessen, a strategic adviser and partner at Mercer, said the small rise in the deficit wasn’t alarming in itself, but did underline the clear need for pension scheme trustees and sponsors to be prepared for changing circumstances.
She added: "High up on the agenda should be investment risk management and also the challenges of making effective decisions against the uncertain backdrop as we get closer to the date of the UK’s departure from the EU."
Andrew Ward, head of risk transfer and partner at Mercer, said the company was seeing "unprecedented" activity this year in the risk transfer market, as sponsors and trustees looked to capitalise on their pension schemes moving from "firefighting mode" to a position of financial strength.
He said: "Improving funding levels and attractive pricing in the bulk annuity market have encouraged pension schemes to explore their options to meaningfully remove or reduce risk for good.
"Additionally, as transfer values remain high, scheme members have become more interested in their benefit options and this has led to further de-risking and reduction in pension scheme balance sheets."
maria.espadinha@ft.com
