Strong funding levels continue as breakthrough announcements reshape the DB endgame landscape

LCP’s latest Pension Explorer analysis at 31 January 2026 shows that the combined IAS19 funding level for the UK pension schemes of FTSE100 companies is strong at a surplus of £60bn - representing a 122% aggregate funding level, which is up 10% over the past 12 months.

Progress of the 2025 Pensions Schemes Bill through Parliament has coincided with increased innovation reshaping the DB endgame market, with The Pensions Trust (TPT) announcing that they’ve secured capital to fund £1bn of superfund transactions and the announcement of the landmark Stagecoach Group Pension Scheme transaction.

With more options available, and yet more due to come to the endgame table, we are seeing schemes focus much more on designing endgame solutions specifically around their objectives, rather than simply looking at whether they want to “buyout or run-on”. The introduction of future new surplus sharing rules brings a new dimension to these discussions and, as the DB surplus for UK pension schemes continues to grow, we are seeing the need for robust analysis in the face of strong views over what different stakeholders see as the best solution.

Jonathan Griffith, Partner and Head of Endgame Innovation at LCP: “What we’re seeing now is a genuine step‑change. Superfund innovation and first‑of‑its‑kind sponsor deals are proving that the endgame can be both flexible and create value.  With improved funding levels and new surplus rules on the horizon, 2026 looks to be a pivotal year for pensions strategies.”

Harry Fitchet, Associate Consultant at LCP, added: “We are seeing innovation providing new options that can provide both upside to members and a clean break to pensions scheme sponsors. This is a strong indication for the growing appetite in bespoke endgame solutions and it’ll be exciting to see what other new developments get traction over the coming months.”