Three quarters of pension professionals expect schemes to share DB surplus with members, XPS polling finds

Three quarters of pension professionals expect schemes to share DB surplus with members, XPS polling finds

29 Sep 2026

Almost three quarters (75%) of pension professionals expect their scheme to share defined benefit (DB) surplus with members at some point, according to new polling by XPS Group.

The snap polling was conducted during a recent XPS webinar examining how DB schemes could share surplus with members under the new surplus flexibilities.

When asked when they expect their scheme to first share DB surplus with members (122 responses):

• 8% said before the new surplus flexibilities come into force in April 2027
• 12% said within one year
• 35% said within one to three years
• 20% said more than three years
• 25% said they do not expect to ever share surplus with members

Overall, more than half (55%) expect their scheme to share surplus with members within the next three years.

Respondents were also asked how surplus should be used where members receive a share (136 responses):

• 37% selected DB pension increases
• 31% selected DB cash lump sums
• 13% selected funding financial education and/or advice for members
• 10% selected DC contribution enhancements
• 6% selected funding improved member experience
• 3% selected DB contribution holidays

Taken together, more than two thirds (68%) selected either DB pension increases or cash lump sums as the most appropriate way for members to benefit.

Tom Froggett, Head of DB Surplus Consulting at XPS Group, said: “The new flexibilities create an opportunity for trustees and employers to think more strategically about how surplus can be used, including how members could benefit.  Equally, many employers will of course feel that they are entitled to a significant share of surplus, having funded deficits and borne risk for many years.  Having a wide range of options for how members could benefit should help trustees and employers work together to reach a solution that can work all round.

“The results also show that there is no single approach that will be right for every scheme. The timing and form of any member sharing will depend on individual scheme circumstances, and trustees and employers will need to agree a clear strategy that balances member security with their wider objectives.

“With more than half of respondents expecting to share surplus within three years, these are discussions that many schemes will need to start having now rather than waiting until the new regime is fully in place."