Industry stresses DB surplus release decisions must be scheme specific

Firms say low dependency should not trigger automatic release of surplus funds as lawyers raise concerns over age restrictions

Alex Levy
clock • 4 min read
iStock.com/SeiyaTabuchi
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iStock.com/SeiyaTabuchi

Government proposals to enable defined benefit (DB) schemes to share surplus with employers and members should treat the low-dependency funding basis as a threshold, rather than a trigger for automatic release, said industry players.

The government is seeking industry views on how an estimated £160bn of DB scheme surplus should be treated, following primary legislation in the Pension Schemes Act 2026 which would allow funds to ...

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