Half (50 per cent) of defined benefit (DB) schemes with more than £1bn in assets are targeting run on, research by WTW has found.

According to WTW’s Endgame Report 2026, while full insurance remains the predominate endgame strategy, chosen by 65 per cent of respondents to the survey, 35 per cent of schemes on average are considering run on, rising to 50 per cent among the larger schemes (£1bn+).

Running a scheme on and sharing surpluses between employers and scheme members should become easier from 2027, when new legislation is expected to come into effect.

While 85 per cent of schemes had already considered their options, 57 per cent anticipated a review within two years.

Over a third (37 per cent) of respondents said the sponsor and trustee were not well aligned on the scheme’s endgame strategy.

WTW senior endgame strategist and head of corporate pensions consulting, Bina Mistry, said: “Improved scheme funding and competitive insurer pricing means that most schemes can now afford the most expensive item on the menu – buyout – and place more emphasis on factors other than price when selecting a provider.

She added: “Running a scheme on is also looking more attractive now that it will be easier to share surpluses between the sponsor and members. Although attention has focused on ‘unlocking’ existing surpluses, this can be as much about generating further surplus where the employer remains strong.”

In terms of sharing surplus, 49 per cent of trustees and sponsors saw a fair share as a requirement for sharing surplus, although ‘fair’ does not automatically translate to ‘equal’ for most, and across all respondents to the survey.

Although a 50/50 split was the most common preference accounting for 35 per cent of respondents, on average one-third of surplus going to members was seen as an acceptable share if their scheme were to run on.

The new legislative framework will permit surplus to be shared with reference to a ‘low dependency’ measure rather than requiring schemes be funded to a buyout (or full solvency) standard. Schemes will be able to set buffers on top.

Nearly half of respondents (44 per cent) anticipated being prepared to share surplus relative to the proposed new basis, rising to 58 per cent among £1bn+ schemes.

Commenting on these findings, WTW senior endgame strategist and head of trustee consulting, Adam Boyes, said: “The government says that the potential for members to gain from employers having easier access to surplus while a scheme is ongoing is vital to the success of its policy and sees trustees’ veto over any surplus release as a strong negotiating card.

“In playing it, trustees will be mindful of the circumstances of their scheme, including what the rules say, the balance of powers between the trustee and the employer, and any reasonable expectations that members might may have.”

On the government’s indication that it would reduce the statutory funding hurdle for making payments to an employer, Boyes added: “Almost half of respondents say that, if their scheme ran on, they would probably be prepared to share surpluses relative to this basis, which is still a prudent one.

“In other cases, trustees will want further safety margins and employers may want to be even more confident that they will not have to pay contributions in future.

“While the often-quoted £160bn is not going to distributed at the first opportunity, the amount of surplus on the table is still material. Many schemes would have significant funds available to distribute to members and sponsors even if they want to remain able to pay a buyout premium should their strategy change,” he concluded

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