The combined IAS19 pensions surplus for defined benefit (DB) UK pension schemes of FTSE100 companies increased in October to around £65bn, according to LCP's Pensions Explorer.

The firm suggested that this strong funding position, combined with broader market headwinds, continued to influence endgame decisions as trustees and sponsors considered when to proceed with an insurance transaction.

Following the increase in company employment costs announced in the Autumn Budget, LCP suggested that DB sponsors may also start exploring all options for cost control, reviewing pension spending, and considering ways to use the scheme to deliver cashflow benefits for them and pension scheme members.

However, LCP highlighted a "developing mindset" of schemes considering their endgames, noting that whilst the public debate often focuses on run-on vs buyout, endgame strategy is more about the journey to the endgame and not just a binary choice at a point in time. 

"Endgame planning is not a rigid "once and done", LCP partner and head of endgame innovation, Jonathan Griffith, commented.

"As circumstances have changed and funding positions improved, we have seen schemes adapt and take a more nimble approach to their endgame.

"Whilst the insurance market remains busy, this shift in approach and mindset has led to a number of schemes implementing robust strategies delivering real value."

LCP consultant and endgame team member, Aaron Chaderton, added: "Seeing the first wave of schemes in the current environment implementing run-on and gaining actual value shows that the vast amount of discussion on alternative endgames can be realised in practice.

"It's really exciting to see how similar flexible run-on frameworks can used for other schemes, corporates and members."

---