The Financial Reporting Council (FRC) will develop technical actuarial guidance to support scheme actuaries in ensuring that defined benefit (DB) pension surplus release to employers meets legislative requirements.

The government published a consultation yesterday (10 June) on draft regulations that would allow trustees of well-funded DB schemes to share surplus with sponsoring employers, which are set to come into force in April 2027.

To help pension scheme actuaries provide actuarial certificates in this area, the FRC announced its intention to coincide the publication of its guidance with the legislation coming into force.

The FRC said this fulfilled its public interest mandate and obligations for developing technical actuarial standards.

“The government's initiative to facilitate surplus sharing in pension schemes aims to support investment, growth and protect member outcomes,” said FRC executive director of regulatory standards, Mark Babington.

“Most DB pension schemes are in a strong funding position, and our guidance will help actuaries apply proportionality and sound judgement, providing appropriate safeguards for members' interests.”

Stakeholders were invited to attend a roundtable to support the development of the guidance to ensure its practical and proportionate, which will take place online on 28 July 2026.

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