Defined benefit (DB) pension schemes of FTSE 100 companies have an aggregate IAS19 surplus of £61bn, equivalent to around £900m per FTSE 100 company with a UK scheme, according to new LCP analysis.

LCP’s FTSE 100 Pensions Explorer analysis, as at 30 September 2026, showed schemes were 122 per cent funded on an IAS19 basis, with the average surplus per company exceeding the average annual dividend paid by a FTSE 100 firm.

LCP argued that the funding positions could give sponsors and trustees more options for securing benefits and managing pension risk.

The results follow the recent Department for Work and Pensions’ consultation on surplus flexibilities for DB pension schemes.

The draft regulations proposed replacing the current buyout funding threshold for surplus extraction with a requirement for schemes to be fully funded on a low-dependency basis, alongside a new forward-looking test requiring them to be expected to remain at or above that level for three years after any surplus release.

LCP said many trustees and sponsors of well-funded DB schemes are considering how the proposed flexibilities could affect endgame planning.

It added that more than 80 per cent of respondents to a recent poll believed the potential benefits should be factored into endgame strategy decisions, while noting that any surplus distribution would need to be considered carefully.

Commenting on the findings, LCP partner and head of endgame innovation, Jonathan Griffith, said: “The size and resilience of pension scheme surpluses are giving trustee and corporate boards confidence to plan the next stage of their endgame strategy.

“With many looking beyond insurance, the emerging surplus flexibilities create important opportunities that need careful consideration.”

Meanwhile, LCP noted that the superfund market continues to develop, citing Clara Pensions’ transfer of the £135m Arco Group Pension and Life Assurance Scheme and the Pensions Regulator's indication that further superfunds are in, or expected to enter, assessment.

LCP associate consultant, George Young, added: “Strong funding positions, combined with developments in surplus reform and the superfund market, are broadening the opportunities available to DB schemes of all sizes.

“Trustees and sponsors should review their endgame strategy to ensure it remains valid in the new pensions landscape.”

---