PRESS RELEASE: Sackers survey shows there are deals to be done on DB surplus

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18th November 2026

Against the backdrop of reforms proposed in the Pension Schemes Bill, Sacker & Partners LLP (Sackers), the UK’s leading specialist law firm for pensions and retirement savings, today announced the results of a recent webinar survey* revealing a strong appetite for releasing DB surplus if the conditions were right.

Attendees were asked what minimum residual funding level would make them comfortable releasing surplus while the scheme remains ongoing, provided part of that surplus is used to augment members’ benefits. The results offered an encouraging picture: while around half of respondents remain cautious, a substantial percentage showed clear openness.

Key findings:

  • 32.76% of respondents said ‘never’
  • 25.86% would release surplus only if the scheme remains fully funded on a buy-out basis
  • The remaining ~41% expressed willingness to consider surplus release under more flexible terms:
    • 3.45% would release if the scheme remains 100% funded on low-dependency basis,
    • 5.17% would require a small buffer (101–110%),
    • 17.24% would require a larger buffer (more than 110%),
    • 15.52% said their answer would depend on how much surplus is used for members.

Tom Jackman, Partner at Sackers, commented: “The fact that roughly 40% of schemes are potentially open to surplus release under the right conditions indicates a real opportunity and given the sheer size of the UK DB market, 40% represents a vast amount of capital.  With scheme funding levels continuing to improve, greater flexibility over the use of surplus has the potential to unlock new investment into the UK economy, drive genuine innovation across the DB landscape and, at the same time, deliver meaningful enhancements for members.”

Jackman continued: “It’s clear there are many deals to be done. Trustees, who are effectively the gatekeepers of surplus, will need to be comfortable that members are getting a fair share of the benefit – but determining how much, in what proportions, and how to structure it is far from straightforward. Beyond the obvious factors such as funding and covenant, trustees must also weigh more nuanced considerations such as existing surplus rules, discretionary practices, and even historic contributions, benefit changes and bulk transfers. Each proposal will need to be considered in the context of its own unique circumstances.

“It will be a challenging task, but it is an opportunity that we believe should be fully embraced. Getting it right is a genuine win-win – for the scheme and its members, for sponsors and potentially for the UK economy.”

 

-ENDS-

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