Defined benefit (DB) schemes need to consider five actions they should be taking to hit the ground running in 2026, with the year set to bring widespread industry change and developments for trustees, LCP has said.

The consultancy outlined actions it believed DB schemes should be taking, including reviewing long-term objectives and keeping up to date with developing endgame options over the year.

It described this as a fast-evolving area following a “burst of activity” in 2025, including the government’s views on surplus release, options for DB schemes consultation, endgame guidance from The Pensions Regulator (TPR), and the Pensions Bill.

Further developments are expected in 2026, including around surplus sharing and superfunds.

DB schemes were also encouraged to evolve their strategic journey plans to achieve their long-term objectives, with LCP stating that a clear and up-to-date journey plan would help navigate the route, make informed investment and funding decisions, and capitalise on opportunities.

Assessing scheme governance was on the action list, with most DB schemes being required to complete their first Own Risk Assessment (ORA) this year.

LCP called on DB schemes to use their first ORA to reflect on whether the right risks were being prioritised.

On governance, the consultancy noted that sole trusteeship will increasingly be in the regulatory spotlight following the government’s trusteeship consultation, and that it expected to see cyber risk and the increasing use of AI to remain as a top priority for trustees to consider.

It also urged DB schemes to review their administration and ensure it delivers what their members need, pointing to TPR’s focus on encouraging the administration industry to raise standards having recently published new guidance.

Alongside this, LCP said confidence in underlying scheme data and benefit calculations was fundamental, especially with pensions dashboards connection deadlines coming up, and predicted that 2026 would be another busy year for specialist pensions data and GMP equalisation teams.

Finally, the consultancy called on DB schemes to consider the member experience, noting that AI in member communications was gathering pace and scheme processes will need to evolve for the changes to inheritance tax coming into force in 2027.

“For many trustees the number of issues to consider and the growing list of different options can seem overwhelming,” commented LCP partner and head of trustee consulting, Jill Ampleford.

“That’s why it’s important to refresh your objectives, identify priority actions and plan ahead to make sure you aren’t taken off guard.”

LCP partner, Katie Peto, added: “There is a lot for trustees to navigate this year, but those who pace themselves, plan ahead and keep members at the heart of decision-making will be best placed to finish the year in a strong position.”

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