Pension deficit up to 200 billion pounds

LONDON (Reuters) - Falling equities and gilt yields pushed the total British pension scheme deficit up to 200 billion pounds at end-June from 179 billion at end-May, the Pension Protection Fund said on Tuesday.

The higher deficit compared with a 13 billion pound surplus at the 7,400 defined benefit pension schemes in June 2008.

The June 2009 figure showed a worsening of the deficits after brief improvement in April and May. The aggregate deficit had plunged to 242 billion pounds at the end of March - its worst deficit position in at least five years.

The PPF attributed the higher deficit figure to a 1.3 percent decrease in assets due to falling British and global equity markets, and lower gilt yields which resulted in a 1 percent rise in pension liabilities in June.

The PPF was set up in 2005 to pay pensions to the members of underfunded defined benefit schemes whose sponsor companies have gone bankrupt.

(Reporting by Raji Menon; Editing by Dan Lalor)

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