The majority of pension professionals intend to adopt new defined benefit (DB) surplus flexibilities, according to new polling by XPS Group.
The snap polling was conducted during an XPS webinar on 25 June 2026, attended by around 200 trustees, employers and pension managers, examining the upcoming DB surplus flexibilities.
The results highlight a clear direction of travel across the pension market:
58% of respondents said they intend to adopt the new DB surplus flexibilities for their scheme
75% expect to set a surplus release threshold above low dependency or buyout, incorporating an additional buffer
75% believe members should receive a share of surplus, with views varying widely on the appropriate amount
A panel discussion with The Pensions Regulator and other industry professionals focused on the importance of setting a surplus policy to agree all of the key elements needed to utilise the new surplus flexibilities effectively, and on the opportunities for all schemes to benefit from the new flexibilities, whether they were intending to run on for the long term or secure benefits with an insurer.
“It is highly encouraging to see a clear majority of schemes already intending to adopt the new DB surplus flexibilities. As trustees and employers look ahead to the April 2027 implementation date, the focus now needs to shift to putting the right frameworks in place, with well-defined and documented surplus policies at their core.
There are still important legislative and regulatory details to be finalised, and getting the balance right between member security and employer flexibility will be crucial in ensuring this strong initial appetite translates into widespread adoption. It is also encouraging to see a high proportion of respondents intending to include funding buffers when setting the level at which to release surplus.
In our experience, trustees and employers are generally aligned on running these buffers rather than extracting surplus at the lowest possible threshold, helping provide security for members and stability of surplus flows for employers and trustees.All schemes, whether they are looking to insure or run on for the long term, can investigate how the new surplus flexibilities can support their objectives.
For example, we are seeing many schemes looking to use the new flexibilities between the point of insurance buy-in and buy-out to accelerate refunds of surplus to the sponsoring employer where appropriate. Views on how surplus should be shared with members remain more varied.
This is ultimately a scheme-specific decision, and trustees and employers will need to approach these discussions with a clear strategy to ensure the overall arrangement meets their respective objectives.”
Tom Froggett, Head of DB Run-On at XPS Group
