The aggregate surplus of DB pension schemes fell to £232.7bn at the end of February, according to the latest Pension Protection Fund (PPF) 7800 Index.

That’s down by £6.3bn from a surplus of £239bn at the end of January.

The funding ratio fell to 126.1% in February, down from 127% in January. Total scheme assets fell 0.1% to £1,124.1bn during the month while total liabilities rose 0.6% to £891.4bn.

The deficit of the schemes in deficit at the end of February was £25.6bn, £1.5bn higher than the £24.1bn recorded at the end of January.

Shalin Bhagwan, PPF chief actuary said: “Despite markets experiencing considerable intra-month volatility in February in response to geo-political news and frequent announcements on tariff policy, the aggregate moves over the month were relatively muted.

“This resulted in little change across PPF 7800 index metrics at the month-end, with the estimated aggregate surplus falling slightly to £232.7bn, from £239bn in January, and the funding ratio edging down by 0.9 percentage points to 126.1 per cent.”

Jaime Norman, senior actuarial director at consultancy Broadstone, said: “It is encouraging that funding positions are holding steady but with market turbulence on the march, trustees and sponsors will have to ensure they are assessing their investment strategy to ensure they are well-protected in the months to come.

“For schemes that can maintain a healthy funding position, the formal entrance of another insurer into the bulk annuity market – the fourth new entrant in under two years – is evidence of the growing endgame opportunities and capacity in the derisking market for well-prepared schemes.”

Alex Oakley, BPA transaction manager at Standard Life, said: “Looking ahead to the upcoming Spring Statement, both the industry and trustees will be waiting to see if further details regarding the potential use of DB surpluses will be announced. In addition, it’s possible any fiscal policy changes may affect upcoming decisions around interest rates, and this could impact gilt markets and funding levels in the future.

“This is important for trustees as they consider how to best manage funding positions while balancing member security. Trustees assessing their endgame options will need to carefully consider the evolving DB pension landscape and wider economic environment to protect member benefits, and we continue to work closely with schemes in navigating these developments to ensure positive outcomes for members and sponsors.”