Pension buffer deficit more than doubles

LONDON (Reuters) - The deficit in Britain's pension buffer fund more than doubled in the 12 months to end-March under the weight of higher pension payouts to workers hit by the financial crisis.

The Pension Protection Fund (PPF) charges companies a levy to fund pensions of employees whose firms go bust.

The PPF annual report said its deficit widened to 1.2 billion pounds at March 31, compared with 517 million a year earlier. The number of workers that moved to the PPF rose to 30,732 from 12,100.

It said on Thursday that the deficit had fallen back below 1 billion pounds by the end of September as big claims dwindled and markets recovered.

The PPF built up an asset base of close to 3 billion pounds as of March 31 and said it had returned 13.4 percent on invested assets in the 12-month period, boosted by hedging strategies.

"We cannot afford to be complacent. Our position could yet be affected by increases in claims or by future movements in the financial markets between now and next March," said PPF Chief Executive Alan Rubenstein.

(Reporting by Joel Dimmock; Editing by David Cowell)