Hope offered to schemes looking to derisk

 The Broadstone Sirius Index – a monitor of how various pension scheme strategies are performing on their journeys to self-sufficiency – posts its latest update.

 The Broadstone Sirius Index reports its September update which finds that its 50% hedged scheme has reached full funding on a self-sufficiency basis.

 Funding levels for the 50% scheme rose from 99.6% at the end of August to 100.3% at the end of September. The fully hedged scheme also saw a positive gain with funding rising from 69.1% to 69.5%.

 Both schemes saw their deficit reduce by around £0.2m, with the half hedged scheme now reaching a surplus for the first time.

 The data comes following a strong year to-date in the pensions insurance market for smaller schemes with a record number of transactions at this end of the market.

  

 Chris Rice, Head of Trustee Services at Broadstone, commented: “When we started the index with a half hedged scheme that was 80% funded at the start of 2022, the idea it would be nudging towards full self-sufficiency funding throughout 2024 and now reaching it would have been considered relatively unlikely.

 “Achieving this milestone at the end of September highlights the tricky decisions many schemes now face in the wake of funding improvements. Insurance remains attractive and the high number of deals completed so far this year provides reassurance a transaction is achievable.

 “Headwinds remain however, with a view that for the second half of this year smaller schemes might be overlooked by some very large deals, as well as the benefit uncertainty created by the Section 37 / Virgin Media case.

 “This uncertainty suggests an opportune time for schemes to consider the options available to them, but for those who are determined to insure, the opportunity to transact will present itself for well prepared schemes.”