Nearly 80 per cent of professional trustee firms believe the role will need to change as defined benefit (DB) schemes become better funded and navigate a growing range of endgame and surplus opportunities, according to LCP's latest Soulmates report.

LCP's sixth annual survey of professional trustee firms also revealed that half believed new skills and experience will be needed as schemes face more strategic decisions.

The report found that trustees are increasingly considering alternatives to buyout, including run-on strategies, superfunds and surplus-sharing arrangements, requiring a broader range of commercial, strategic and governance expertise.

Professional trustee firms ranked collaboration with sponsors as the most important attribute sought by employers when making appointments, followed by pension risk transfer experience and cost control.

Stakeholder management, commercial judgement and surplus management were also highlighted as growing areas of importance for professional trustees.

More than half of the survey respondents said formal governance processes, including peer review, documented decision-making and clear frameworks, would be important in demonstrating that member interests had been considered in surplus-related decisions.

The survey also found that firms expected the Pension Schemes Act 2026 to reinforce existing trends, including increased interest in surplus extraction and sharing arrangements, alongside efforts to resolve issues arising from the Virgin Media judgment.

LCP partner, Nathalie Sims, said: “Professional trusteeship is moving into a new phase. Improved funding levels mean many schemes are no longer focused solely on how to reach buyout, but on which endgame strategy will deliver the best outcome.

“That shift is changing expectations of professional trustees. Technical expertise remains essential, but schemes increasingly need trustees who can bring commercial judgement, manage complex stakeholder discussions and provide strategic direction across a wider range of options, from buyout and run-on to superfunds and surplus management.

“The challenge is no longer simply securing an endgame, but making the most of the opportunities that strong funding has created,” she concluded.

LCP’s latest Soulmates report, focusing on growth and changing trends in the professional trustee market over the year, will be published in full in September 2026.

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