The combined IAS19 pension surplus for FTSE100 UK pension schemes stood at over £55bn as of 30 September 2025, representing an aggregate funding level of 120 per cent, according to LCP’s Pension Explorer.
LCP says this strong position and current market conditions are shaping when sponsors and trustees consider insurance deals or other endgame options. Individual scheme funding levels range from around 90 per cent to more than 150 per cent, highlighting the need for trustees to focus on strategies tailored to their scheme’s circumstances rather than following a one-size-fits-all approach.
According to LCP regulatory developments such as the 2025 Pension Schemes Bill and the growth of DB superfunds are creating new options for schemes to optimise outcomes.
The consultancy also notes that fully funded schemes are increasingly exploring ways to deploy surpluses, such as providing ongoing DC contributions to current employees, helping sponsors balance member benefits and financial efficiency.
LCP partner and head of endgame innovation Jonathan Griffith says: “With robust funding levels and over £55bn in surplus across FTSE100 schemes, the conversation has firmly shifted from funding to future-proofing and delivering value. We’ve been able to help trustees and pension scheme sponsors use the tools, flexibility, and market innovation to turn strong funding into stronger outcomes.”