The Financial Services Authority (FSA) has reduced the deficit in its defined benefit (DB) pension scheme by £7.4m over 2011, the firm announces in its annual report this week.

The FSA pensions offering knows two sections, both of which are non-contributory; a DB section (closed to new entrants and any future accruals) and a defined contribution (DC) section.

Between the end of March 2011 and 2012, the deficit within the DB section of the scheme fell from £112.2m to £104.8m. The financial watchdog's level of unfunded liabilities remained constant at £2.3m over the same period.

According to the FSA's annual report, which was published this week, the value of the scheme's assets increased from £339.7m at the end of March 2011 to £375.9m at the end of March this year. Over the same period the firm's pensions obligations increased from £451.9m to £480.7m.

The FSA had net liabilities of £66.1m at 31 March 2012, primarily as a result of £107.1m worth of pension liabilities, calculated under IAS19. Excluding the pensions deficit, the FSA had a net surplus of £41.0m.

More detailed information on the FSA pension accounts can be found on Pension Funds Online.

First published 19.06.2012

azeevalkink@wilmington.co.uk