The Society of Pension Professionals (SPP) has called for a policy reboot to keep existing defined benefit (DB) schemes open and to fast-track collective defined contribution (CDC) schemes, as the relaunched Pensions Commission turns its attention to pensions adequacy.

In a new paper, Past Lessons, Future Gains, SPP argued that the current adequacy crisis cannot be fixed by contribution reviews alone and urged the commission to examine the type of scheme people save into, warning that the long shift from DB to DC has caused widening outcome gaps.

The call comes after the government confirmed the Pensions Commission’s relaunch to address undersaving, which was broadly welcomed across the industry.

Indeed, the paper cited the Department of Work and Pensions' (DWP) analysis showing that 46 per cent of working-age people are not saving enough for retirement.

Addressing concerns around DB schemes, SPP said a stable, flexible regime and more attractive design features would help the 200-plus open schemes remain open and, over time, rebuild confidence to the point where some sponsors might reconsider DB.

In addition, the paper supported the enabling and encouraging of surplus release, conditional indexation, and more efficient longevity-risk hedging, while also exploring a framework for DC members to swap their pension pot at retirement for a secure DB-style income.

Meanwhile, the paper welcomed new surplus-sharing measures in the Pension Schemes Bill, also approving of the government’s valuation of potential releasable surplus on a low-dependency basis.

However, SPP urges ministers to decide “sooner rather than later” on how to utilise the Pension Protection Fund's (PPF) surplus, pointing to the fund’s latest position.

As employers grapple with record funding levels, the discussion on surplus use and trustee protections is intensifying, with recent analysis highlighting an average DB funding level of 105 per cent and nearly two-thirds of schemes in surplus.

With this in mind, SPP proposed several options to unlock more surplus safely, such as tax changes to make one-off member payments an authorised route within surplus packages, and measures to reassure trustees.

It stated that this could include examining 100 per cent PPF protection, where schemes invest in line with the guidance.

On CDC, SPP said it supports multi-employer arrangements and recommends a
government-sponsored, whole-of-life CDC via NEST to provide a mass-market route and a continuity “home” if other CDC schemes wind up.

The paper’s findings reflect current expectations that regulations and updated guidance from The Pension's Regulator (TPR) for multi-employer CDC will be completed in 2026, enabling launches from 2027, a timeline echoed in the government’s pensions roadmap and market activity, such as TPT’s plans to launch a multi-employer CDC scheme.

With master trusts preparing to offer default retirement income pathways by 2027, SPP emphasised that decumulation-only CDCs must align with this timetable, positioning D-CDC as a compelling default for members who want a lifetime income without the complexity of drawdowns.

SPP DB committee chair, Jon Forsyth, said the paper aims to inform the commission’s adequacy work and chart a path for collective schemes to “thrive” alongside DC, improving retirement security while supporting the wider economy.

“We believe this is essential to a healthy future pensions landscape that provides UK employees with a secure and comfortable retirement, whilst also benefitting the wider economy in terms of reduced reliance on the state and increased disposable incomes,” he added.

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