Strong funding levels across the UK’s largest defined benefit (DB) pension schemes are being accompanied by rapid innovation in the endgame market, LCP's latest Pension Explorer has revealed.

The firm's latest analysis, as at 31 January 2026, showed that the combined IAS19 funding level for the UK pension schemes of FTSE 100 companies remained in a significant surplus of £60bn.

This equated to an aggregate funding level of 122 per cent, up by 10 per cent over the past 12 months.

The firm noted that the progress of the Pension Schemes Bill through Parliament coincided with a wave of announcements reshaping the DB endgame landscape.

It pointed to recent developments, including The Pensions Trust securing capital to support £1bn of superfund transactions, as well as the landmark transaction involving the Stagecoach Group Pension Scheme.

With a broader range of endgame options now available - and more expected to emerge - LCP said that schemes were increasingly focused on designing solutions tailored to their specific objectives, rather than defaulting to a binary choice between buyout or run-on.

Meanwhile, the prospect of new surplus-sharing rules was adding another dimension to these discussions, particularly as DB surpluses across UK schemes continued to grow.

LCP partner and head of endgame innovation, Jonathan Griffith, described the latest results as proof of "genuine step change."

"Superfund innovation and first-of-its-kind sponsor deals are proving that the endgame can be both flexible and create value.

"With improved funding levels and new surplus rules on the horizon, 2026 looks to be a pivotal year for pensions strategies.”

LCP associate consultant, Harry Fitchet, added: “Innovation is providing new options that can deliver both upside for members and a clean break for pension scheme sponsors.

"This is a strong indication of the growing appetite for bespoke endgame solutions, and it will be exciting to see which new developments gain traction over the coming months.”

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