Member option exercises are "here to stay," Society of Pension Professionals (SPP) polling has suggested, with the government set to announce plans for greater defined benefit (DB) pension scheme surplus extraction.

Member option exercises are where members of a DB pension scheme are given the option to choose how to modify or access their pension benefits, often including options like taking a lump sum, changing their retirement age, or exchanging future pension increases for a higher immediate payout, usually as part of a strategy by the scheme to manage its financial risks or encourage member participation.

Over 350 pension professionals attended an SPP event and were asked, "Are you planning (or have you conducted in the last 12 months) a member options exercise for any of the schemes you advise?"

More than a third of respondents (34 per cent) stated that they had, whereas almost two-thirds had not.

The polling also indicated that just 5 per cent of respondents considered member option exercises to be "no longer applicable", compared to almost half (48 per cent) who said they were "likely to be embedded going forward" and 47 per cent who said such exercises were "likely to come back in the form of one-off exercises."

SPP member, Sonya Fraser, who also participated as a panellist at the event, commented on the findings: "It's clear that member option exercises are here to stay and are likely to form a key feature of many DB schemes in the months and years ahead - this industry polling proves that beyond doubt."

The polling comes as the government looks set to announce plans to lift restrictions on how well-funded occupational DB pension schemes can invest their surplus funds, unlocking "billions" of pounds to drive growth and boost pension pots.

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