LONDON, 1 July 2008 - Nearly one third of pensions schemes (31%) fell from surplus into deficit over the last month, with the overall proportion of schemes in deficit now standing at 75%, according to research out today from Aon Consulting, a leading pension, benefits and HR consulting firm. Whilst many trustees are keeping abreast of the impact tougher economic conditions have on employers by undertaking annual employer covenant assessments, Aon argues that this may not be frequent-enough scrutiny and poses a risk to the security of pension schemes.

The Aon200 Index, which tracks the surplus (or deficit) of the 200 largest UK privately-sponsored pension final salary schemes, showed that the aggregate pension scheme deficit deteriorated by £36 billion in June and now stands at £30 billion. The overall proportion of schemes in surplus fell from 56 per cent of schemes to just 25 per cent. The fall in the Aon200 Index has been prompted by falling equity markets, albeit slightly offset by rising bond yields over the month.

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