One in every four pension scheme trustees and sponsors believes that a run-on is a realistic option for DB schemes, according to XPS Pensions Group.
According to a poll, which was sent to 300 pension trustees and sponsors at an XPS online event, insurance buyout was the preferred destination for more than half or 53 per cent of respondents.
But more than one-quarter of trustees and sponsors or 27 per cent believe that running their scheme to produce more surplus is either the correct strategy currently or would be the right strategy if the government regulated to offer employers and trustees more surplus flexibility.
Superfunds were chosen by 3 per cent of respondents, with 17 per cent undecided.
According to a second poll, 69 per cent of respondents feel that DB schemes should play a role in growing investments in productive finance, such as private equity, infrastructure, and start-ups.
Among these respondents, 36 per cent said it should be confined to plans available to new members, while 33 per cent thought it should apply to all schemes. In contrast, 31 per cent of respondents completely disagreed with this.
XPS Pensions Group partner Wayne Segers says: “While buyout will ultimately be right for many schemes, our poll reflects the growing interest we are seeing in running on and generating surplus for the benefit of DB members, employees’ DC savings and employers’ UK businesses.
“The poll results show a clear desire for support from Government in doing this. In response to the Government’s Mansion House consultations, we have set out a pragmatic proposal which would improve outcomes for scheme members and drive UK growth.”
