DB surplus sharing and DC solutions

DB Surplus Sharing and DC Solutions

Defined Benefit (DB) pension scheme funding levels have reached record highs, with three in four schemes now in surplus.

The collective deficit has decreased significantly, from £500 billion in 2019 to £140 billion in 2024, with deficit payments dropping by over £10 billion annually.

Schemes in surplus now hold over £160 billion collectively, and for the first time, FTSE 350 sponsors paid more into DC pensions than DB schemes in 2024.

This improved financial resilience, combined with the Government's "Plan for Change", is prompting a rethink of how surplus could be used, with surplus sharing and corporate flexibility being key themes.

Surplus sharing and corporate flexibility stood out as one of the recurring themes at the recent Pensions UK Conference.

Authors summary: DB surplus sharing is a growing trend.

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Corporate Adviser Corporate Adviser — 2025-11-05

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