More than half of pension schemes see potential in the new DB surplus rules but say it’s too early to tell how impactful they’ll be, according to a recent poll at an LCP webinar.
While interest in exploring new ways to access surplus funds is high, only around 1 in 5 said the changes could be significant for their scheme. When asked about the impact of surplus proposals on their pension strategy, 20 per cent of attendees saw it as significant, 57 per cent said it’s potentially impactful but too early to tell, while 10 per cent are already planning surplus sharing, and 12 per cent have no plans to share surplus.
The results are almost identical to a survey from February 2025, when the Prime Minister and Chancellor had just voiced support for greater access to DB surpluses, but before any real detail had emerged.
LCP says that it’s clear that, despite recent updates such as the DWP consultation response, new endgame guidance, and the Pension Schemes Bill, many schemes are still cautious about it all.
LCP head of trustee consulting Jill Ampleford says: “The raft of recent publications will take some time to digest, but has fired the starting gun for trustees to consider what this means for their scheme and its members to best prepare for when the new laws are in place. The new powers put trustees in a crucial position, having the ability to initiate a change in scheme rules if they are a potential barrier to a preferred strategy as well as having ultimate sign-off on any approach.”
LCP head of corporate consulting Gordon Watchorn says: “The DB landscape has shifted dramatically in recent years, with funding positions generally much improved and government and regulators keen to ensure that schemes have a wider range of options in terms of endgame strategy.
“For sponsors, after decades of significant investment in pension schemes, this creates a once-in-a-generation opportunity to engage with their trustees and work together to develop a strategy which is right for members and sponsor alike. The DWP and the Regulator are creating an environment which enables sponsors to consider a broader range of options, and the right solution will depend on the circumstances of each case. Companies who engage early and constructively with their trustees will have the best chance of reaching a positive solution”.
