Pension funds deficit up by 20 billion pounds

LONDON (Reuters) - The Pension Protection Fund said on Monday the schemes eligible for its help have posted a 20 billion pound increase in their total deficit in September.

The deficit accumulated was 113.5 billion pounds last month, up from 91.6 billion pounds at the end of August, said the PPF, which compensates members of underfunded schemes in the United Kingdom when their sponsors go bankrupt.

In September 2007 the same schemes had an aggregate surplus of 113.5 billion pounds, the agency also noted.

The PPF declined to comment on the figures but consultancy Aon said last week the 200 largest UK corporate pension schemes had lost more than 45 billion pounds since the end of August because of the falling equity markets.

The PPF was launched in 2005 and offers protection to defined benefit and hybrid schemes.

(Reporting by Cecilia Valente; Editing by Sharon Lindores)