The combined IAS19 pensions surplus for defined benefit (DB) UK pension schemes of FTSE 100 companies increased to over £65bn in November, according to LCP’s Pensions Explorer.

The firm highlighted that November was notable for DB schemes as one bulk annuity deal had helped to “expand the portfolio” of endgame options available for schemes.

In November, M&G launched its 'Value Share Bulk Purchase Annuity' proposal and announced its first deal with an unnamed pension scheme.

The transaction was in the region of £500m and provided the pension scheme with a buy-in.

However, it also enabled the scheme’s sponsor to participate in future financial risks and rewards through a captive reinsurer.

According to LCP, the size of the deal opened new endgame options for schemes of a similar scale.

The firm also said that the Chancellor’s first Mansion House speech, delivered last month, did not significantly impact DB pension schemes, as it focused on changes to defined contribution (DC) and the Local Government Pension Scheme (LGPS) instead.

LCP partner and head of endgame innovation, Jonathan Griffith, commented: “As we approach another year-end of strong funding positions, it’s great to see new innovations coming to the market to support schemes in their chosen endgame.

"It is more evidence of schemes of all sizes wanting to consider all options and potentially do something different with their strategy.”

LCP consultant, Aaron Chaderton, added: “Despite the lack of emphasis on the DB schemes in the Chancellor’s speech, the ‘real-world’ progression of all forms of endgame strategies is extremely encouraging.”

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