Three quarters (75 per cent) of pension professionals expect their scheme to share defined benefit (DB) surplus with members at some point, according to a poll by XPS Group.

The findings come as the pensions industry prepares for new DB surplus flexibilities, expected to come into force in April 2027, which will allow well-funded schemes to share surplus with sponsoring employers and members, subject to regulatory safeguards.

The poll, conducted during an XPS webinar on the topic, found that overall, 55 per cent of respondents expected their scheme to share surplus with members within the next three years.

Of the 122 respondents, 35 per cent expected this to happen within one to three years, 12 per cent within a year and 8 per cent before the new flexibilities come into force.

Meanwhile, 20 per cent expected it to take longer than three years and 25 per cent said they did not expect their scheme to ever share surplus with members.

A separate poll of 136 respondents found that overall, 68 per cent believe members should benefit from any surplus through DB pension increases or cash lump sums.

Pension increases were the most popular option, selected by 37 per cent of respondents, followed by cash lump sums (31 per cent), while 13 per cent favoured funding financial education or advice, 10 per cent supported enhanced defined contribution contributions and 6 per cent preferred investment in the member experience.

Only 3 per cent opted for DB contribution holidays.

XPS Group head of DB surplus consulting, Tom Froggett, said: “The new flexibilities create an opportunity for trustees and employers to think more strategically about how surplus can be used, including how members could benefit.

“Equally, many employers will of course feel that they are entitled to a significant share of surplus, having funded deficits and borne risk for many years.

"Having a wide range of options for how members could benefit should help trustees and employers work together to reach a solution that can work all round.”

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