Running on and DB surplus release – an overview for trustees | Insight Investment

We believe it makes sense for trustees to develop a clear understanding of running on and the associated practicalities now that the Pension Schemes Act 2026 has received Royal Assent.

Running on and releasing surplus can create real value for members and the sponsor. Trustees need a clear, shared reason for doing it, and a practical plan for how it will work. It will not be right for every scheme.

Initial decisions

• What is your pension scheme's time frame?
• How is surplus shared?
• What governance rules are needed?

Adding more detail

• Surplus release framework
• How is funding risk managed?
• Additional forms of protection

Investment approach

• Strategy should be aligned to endgame target and consistent with surplus release method