More than half of defined benefit (DB) pension schemes are already actively considering sharing surplus funds, research from LCP has revealed.

The proportion of schemes interested increased with size, rising to two-thirds of those over £1bn and 80 per cent of schemes over £5bn.

LCP suggested that the findings will be particularly encouraging for the government, following on from its response to the options for DB schemes consultation last week, which confirmed plans to make it easier for schemes to access surplus funds to boost investment and benefit scheme members.

However, whilst 29 per cent of respondents said that the new rules are expected to have a potentially significant impact, confirming that they will review their strategy as a result, 45 per cent said that the new rules would have no impact as they have no intention of sharing or distributing their surplus.

In addition to this, 20 per cent said there would be no impact as they are already planning to share or distribute their surplus, while six per cent said it would be a significant development and that their strategy would change.

LCP partner, Mary Spencer, said it was “encouraging” to see how many schemes were already actively considering what the new rules around surplus use might mean for them, recognising the potential benefits for both members and sponsors.

"We would expect this has only grown with last week’s announcements,” she suggested.

However, Spencer acknowledged that not all schemes would want to use any new flexibilities, and actual practice would depend on the ultimate policy details and, crucially, the protection given to members.

“Still, it’s great to see schemes being promised additional flexibility, with LCP having been a key industry voice advocating for policy change in this area over recent years,” she added.

The survey was conducted in March and April, with the full results and report set to be published later in June.

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