Majority of DB schemes ‘only starting to digest’ new endgame freedoms

A poll undertaken at a recent LCP webinar on the new rules around the use of DB surpluses has found a high level of interest in exploring the potential for new ways of accessing surplus funds. But only a minority of respondents (around 1 in 5) were already in a position to say that these changes ‘could be a significant development’ for their scheme. The largest group (just over half) thought that the reforms were potentially important but that it was still ‘too early to say’. The full results of the survey are shown below.

Results of the survey at the LCP webinar on 9 June

Question: To what extent will the use of surplus proposals affect your pension scheme strategy?

Notably, the split in votes was almost identical to a similar survey undertaken back in February 2025. This was when the Prime Minister and the Chancellor had recently indicated their support in principle for greater access to DB surplus funds, but before any details had been released.

The results suggest that the raft of recent official publications, including the response to the DWP consultation on DB options, new ‘endgame’ guidance from the Pensions Regulator, and the publication of the Pension Schemes Bill are still being digested by schemes, many of whom have yet to work out what this all means for them. These developments have clearly made schemes think hard about their longer-term strategy and have made many pause for thought, awaiting more details.

Commenting, Jill Ampleford, Head of Trustee consulting at LCP, said:

“The raft of recent publications will take some time to digest, but it 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.”

Gordon Watchorn, Head of Corporate Consulting at LCP, said:

“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 sponsors 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.”