Around two-thirds of trustees, sponsors and pension professionals say recent policy developments had increased their confidence in running on defined benefit (DB) schemes and releasing surplus, according to PwC research.

Live polling of approximately 200 attendees at a PwC pensions event found that the government’s surplus release consultation and The Pensions Regulator’s (TPR) accompanying statement had improved confidence in pursuing these options.

This came as PwC’s Pension Funding Index showed that UK DB schemes maintained strong aggregate funding positions during June 2026.

As at 30 June, schemes held estimated assets of £1.11trn against liabilities of £900bn on a low-dependency basis, producing a £210bn surplus and an aggregate funding ratio of 123 per cent.

The low-dependency surplus increased from £200bn at the end of May, while the funding level rose from 122 per cent.

PwC noted that the position had remained robust despite continued economic uncertainty and market volatility.

Indeed, its Low Dependency Index had remained above 120 per cent throughout 2026, rising from 121 per cent in January to a peak of 124 per cent in April before standing at 123 per cent in June.

Meanwhile, PwC’s Buyout Index, which estimates the cost of fully insuring the UK DB scheme universe, showed an aggregate surplus of £155bn at the end of June.

Schemes were estimated to hold assets of £1.11trn against buyout liabilities of £955bn, equivalent to a funding level of 116 per cent.

The buyout surplus increased from £150bn in May, although it remained below the £165bn recorded in April.

The estimated buyout funding level has remained above 110 per cent throughout the year, increasing from 112 per cent in January to 117 per cent in April before settling at 116 per cent in May and June.

PwC’s Superfund Index also remained strong, recording an estimated £220bn surplus and a 125 per cent funding level in June.

This represented an increase from the £210bn surplus and 123 per cent funding level recorded in May, and returned the index to the 125 per cent level last seen in April.

PwC argued that the combination of strong funding levels and greater regulatory clarity was encouraging more trustees and sponsors to consider run-on and surplus release alongside insurance and consolidation options.

PwC UK pensions partner, Saye Mkangama, said the government’s consultation represented an important step towards making surplus release practical for well-funded schemes.

“That greater clarity is already influencing market sentiment, with around two-thirds of trustees, sponsors and industry professionals responding to PwC polling saying the consultation and TPR’s statement have increased their confidence in running on schemes and releasing surplus," he said.

However, Mkangama warned that further work was required to convert this confidence into decisions by trustees and sponsors.

“Government and TPR have an opportunity to create a practical framework that gives trustees and sponsors the certainty to make informed decisions while maintaining appropriate member protections," he added.

“If achieved, the new flexibilities could allow well-funded schemes to put surplus capital to more productive use without compromising members’ security.”

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