Pension funding gap soars to £242 billion

LONDON (Reuters) - The deficit facing 7,400 of the country's pension funds worsened in March to 242 billion pounds, more than 10 times its year-ago level, according to the Pension Protection Fund, an insurance scheme for underfunded plans.

The PPF's survey on its website, www.pensionprotectionfund.org.uk, said the deficit, as measured by total assets minus total liabilities, was up from 204.7 billion pounds at the end of February and compared with just 22.9 billion pounds at the end of March 2008.

The monthly survey is based on predominantly private sector defined benefit schemes.

($1=.6790 Pound)

(Reporting by Andrew Callus, editing by Leslie Gevirtz)