All professional trustees surveyed by Barnett Waddingham (BW) believe there is increasing pressure from government or sponsoring employers to use defined benefit (DB) pension scheme surpluses in ways that could conflict with their fiduciary duties to members.

Research published in BW's The Retirement Runway report, based on a survey of 50 professional trustees, found that one in five (20 per cent) described this pressure as significant, while the remaining 80 per cent said it existed to some extent.

The findings come as the government continues to push forward with reforms aimed at unlocking surplus assets from well-funded DB schemes.

Earlier this month, the Department for Work and Pensions (DWP) launched a consultation on draft regulations that would allow trustees to release surplus funds to sponsoring employers where it is safe to do so, following powers introduced through the Pension Schemes Act 2026.

Against this backdrop, the research suggested trustee attitudes towards endgame planning were shifting.

Indeed, more than four in five (82 per cent) trustees said low dependency was now a more appropriate long-term funding target than buyout, while half (50 per cent) of trustees overseeing medium-sized schemes identified run-on with employer support as their preferred strategy.

Nearly two-thirds (62 per cent) of trustees also said they would be more likely to consider run-on strategies designed to generate surplus under the new legislative framework.

The report highlighted a significant change in scheme strategy over the past 12 months.

Among medium-sized schemes, 35 per cent have moved from self-sufficiency to run-on approaches, while two-thirds (67 per cent) of large schemes have shifted from buyout towards self-sufficiency.

Meanwhile, trustees indicated that run-on strategies were increasingly viewed as a way to create additional value from well-funded schemes.

Among medium-sized schemes pursuing growth-focused investment strategies, 58 per cent said they were exploring the generation of a 'super surplus' to support discretionary increases in member benefits.

The same proportion said any surplus could potentially be used to provide refunds to sponsoring employers.

By contrast, smaller schemes remained more focused on repairing funding positions, with 53 per cent of trustees saying growth strategies were primarily aimed at reducing deficits.

Commenting on the findings, BW managing partner, Alex Pocock, argued that DB schemes were "entering a new phase".

"Improved funding positions mean most trustees now have more options on the table than they did just a few years ago: whether that's buyout, superfund, low dependency, self-sufficiency or run-on," Pocock said.

"In a sense, it's not surprising at all - many schemes that wanted to buyout have now done so, leaving those still in the market pursuing flexibility," he continued, suggesting that the debate around surplus use is a "natural consequence" of that progress.

"Trustees will recognise the opportunities that surplus capital can create, but our findings show that they're also firmly focused on their responsibilities to act in members' best interests," he added.

"It's understandable that policymakers want to create greater flexibility and make better use of surpluses, but that doesn't have to come at the expense of member outcomes.

"The recent surplus proposals are a positive step forward, but trustees will still need the confidence to make use of these new flexibilities while remaining aligned with their fiduciary duties.

"As more schemes weigh up these options, balancing member, sponsor and trustee interests will be critical."

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