The pensions industry is split on whether run-on is a viable endgame option for defined benefit (DB) schemes, according to a poll.

The survey, conducted by the Society of Pension Professionals (SPP) and Association of Pension Lawyers (APL), found that just 9 per cent of pension professionals believed that run-on was a viable option for most of their schemes.

Meanwhile, more than two-thirds (69 per cent) felt that it would be a serious consideration, but only for some of their schemes.

Nearly a quarter (22 per cent) said that, for all or most of their schemes, risk transfer remained the only viable long-term strategy.

The poll was conducted at a jointly held event by the SPP and APL, which examined the legal considerations in deciding whether to run-on rather that securing a bulk annuity deal from an actuarial, trustee and legal perspective.

Commenting on the findings, SPP member and CMS Cameron McKenna Nabarro Olswang partner, Natalie Mee, said: “The SPP polling demonstrates that there is no one-size fits all solution for pension schemes.

"For some, DB run-on may be the best option, for others it’s risk transfer.

“The fact that so many schemes enjoy strong funding and strong covenant support means they now have genuine choice when it comes to making their endgame decision and that’s something we should all welcome.”

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