XPS Group has launched an integrated defined benefit (DB) run-on solution designed to support trustees and employers as the industry prepares for the next phase of the DB surplus regime.

The new XPS Integrated Run-On offering brings together expertise from the firm’s pensions, investment, administration and insurance consulting teams to help schemes manage the opportunities and complexities associated with running on DB schemes.

XPS noted that the launch comes amid a growing shift towards trustees and employers exploring run-on strategies, either as a temporary bridge to buyout or as a longer-term objective.

Indeed, recent research from XPS found that UK DB schemes could generate up to £170bn in surplus over the next decade, measured as funding above 100 per cent on a buyout basis, while 41 per cent of medium-to-large schemes are now considering run-on.

The firm also pointed to the finalisation of the Pension Schemes Act as a key development moving the industry closer to a new surplus framework, with further consultations expected from the Department for Work and Pensions and The Pensions Regulator.

XPS argued that this would increase the need for trustees and sponsors to establish scheme-specific approaches to areas such as surplus release, governance, investment strategy and member security.

With this in mind, the integrated run-on proposition has been structured around three core areas: strategy, governance and administration.

According to XPS, schemes can either adopt the solution as a fully outsourced 'one-stop-shop' model or use individual elements to supplement existing run-on frameworks.

Alongside the launch, XPS has also established a community of schemes running on, aimed at sharing insights on emerging practices and regulation in the DB run-on market.

The initiative follows the firm’s inaugural run-on discussion forum in December 2025, which involved senior decision-makers from 25 large DB pension schemes representing more than £100bn in assets under management.

Commenting on the launch, XPS Group partner and head of DB run-on, Tom Froggett, said the industry discussion had moved beyond whether schemes should run-on.

“The conversation is no longer just centred on whether schemes should run-on, but on how trustees and employers can deliver the benefits of run-on in a safe, robust and efficient way,” he stated.

“That brings a wide range of strategic and operational challenges, from investment strategy and surplus release planning through to governance and administration.

“XPS Integrated Run-On has been designed to bring these elements together into a single framework, helping trustees and employers optimise their DB run-on approach.”

Froggett also revealed that XPS had already worked with more than 10 schemes with combined assets exceeding £50bn using the approach ahead of the formal launch, with further feasibility studies underway.

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