U.S. defined benefit pensions were not the only ones suffering in July. According to Mercer's Pensions Risk Survey, the accounting deficit of defined benefit pension schemes in the United Kingdom over the month of July, with the estimated aggregate IAS 19 deficit for the defined benefit schemes of the FTSE350 companies standing at £75 billion, which is a funding ratio of 87 percent.

This compares to a deficit figure of £70 billion at the end of June for a funding ratio of 88 percent. The deficit was actually £61 billion at the end of December 2011, for a funding ratio of 89 percent.

Over the month, long-term market implied RPI inflation fell significantly by around 25 bps, which by itself served to reduce the value placed on scheme liabilities.  However, high-quality corporate bond yields also reduced by around the same amount.  A fall in corporate bond yields, which are used to place a value on pension scheme liabilities in company accounts, will increase the value placed on these liabilities, and this more than offset the effect of the fall in market implied inflation.  This meant the overall liability value increased by slightly more than 2 percent over the month to £585 billion as of July 31.  Asset values also increased marginally from £501 billion as of June 30 to £510 billion as of July 31, so that the net increase in the deficit was only £5 billion.