New analysis of FTSE 100 pension positions by occupational pensions consultancy LCP (Lane Clark & Peacock) shows that the combined estimated IAS19 surplus — the measure used within corporate accounts — stood at £130 billion on December 31.

LCP’s Pensions Explorer shows scheme funding levels may have fallen from their record highs of the last couple of quarters, but “are still standing at robust levels and have more than doubled over 2022.”

LCP said: “Whilst some schemes were hit by reductions in hedging levels and lost out financially in the aftermath of September’s mini budget, many more have burst through funding targets and are now in the healthiest position to date.

“This means that schemes need to turn their thoughts to how they will best manage and generate value from this surplus.”

LCP partner Jonathan Griffith said: “Whilst we are seeing funding levels dipping below the record levels over the autumn, it’s clear that for the majority there has still been a huge improvement in funding levels over 2022.

“This has shifted the focus for many companies towards surplus management and generating value from future pensions actions.

“Pension scheme sponsors have waited 20 years to be in the position they find themselves in today – 2023 is going to be a pivotal year for ensuring sponsors’ objectives are fully reflected throughout the next stages, whether that be achieving optimal terms on settling liabilities or running the scheme on to generate value.”