The pensions industry has split opinions on which is the better endgame option for defined benefit (DB) pension schemes, run-on or buyout, according to a poll from the Society of Pension Professionals (SPP).

SPP members debated buyouts and productive finance at its annual 'The Debates' event earlier this month.

Hosted by Aon, the panel featured four senior pension professionals who argued their positions in two separate debates.

SPP members began by discussing whether pension schemes should run-on even if they can afford to buyout.

The arguments in favour of running on included increased flexibility, especially to improve member benefits, and arguments against it included relatively high costs and risk.

Attendees were polled before the event, with 51 per cent agreeing that pension schemes should run-on even when they can afford to buyout, while 49 per cent disagreed.

However, the results changed "dramatically" after the event, with 73 per cent favouring buyout.

The second debate asked whether pension trustees should prioritise UK investment.

The case for doing so was centred around the relative cheapness of UK stocks and shares, which presented opportunities for growth and the need for better infrastructure and facilities.

Against this argument were the overriding need to maximise savers' returns, the benefits of global diversity, and the comparatively poor UK performance in recent decades.

Again, attendees were polled before the event, and a majority (56 per cent) agreed that pension trustees should prioritise UK investment.

However, support changed again when hearing both sides of the argument, with support for prioritising UK investment falling to just a third (33 per cent), while 67 per cent believed trustees should not prioritise UK investment.

Eversheds Sutherland pensions associate, Harriet Burchett, who chaired the event, said; "The Debates again proved to be an engaging, informative and good-natured means of exploring some of the big issues facing the pensions industry.

"Compelling arguments were made on both sides and the end results help to demonstrate that views can often change when preconceived ideas are challenged and the facts are debated."

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