XPS launches run-on solution as schemes prepare for new surplus regime

XPS launches run-on solution as schemes prepare for new surplus regime

12 May 2026

XPS Group, a leading UK consulting and administration business specialising in the pensions and insurance sectors, today launches XPS Integrated Run-On, a new solution designed to help trustees and employers take a safe and robust approach to running on Defined Benefit (DB) pension schemes, as the UK’s DB surplus regime moves into its next phase.

The launch comes amid a significant shift to more trustees and employers exploring run-on, either as a temporary bridge to buyout or as a long term strategy. Recent XPS research found that UK DB schemes could generate up to £170bn of surplus over the next decade, measured as funding above 100% on a buyout basis, while 41% of medium-to-large schemes are now exploring run-on.

The finalising of the Pension Schemes Act has moved the industry closer to a new surplus framework, with attention now turning to upcoming consultations from the Department for Work and Pensions and The Pensions Regulator. XPS said this creates a growing need for trustees and sponsors to establish clear, scheme-specific approaches to surplus release, governance, investment strategy and member security.

Against this backdrop, XPS Integrated Run-On brings together expertise from XPS’ Pensions, Investment, Administration and Insurance consulting practices to support schemes to navigate the growing opportunities and complexities of run-on through three core pillars of strategy, governance and administration.

The new approach can be adopted either as a fully outsourced approach where all of the elements are run as a ‘one-stop-shop’, or a more flexible version where individual elements can be adopted to supplement a scheme’s existing run-on framework. 

To further support this Integrated Run-On proposition, XPS has also developed a community of schemes that are running on, providing insights into emerging rules and practices around DB run-on. This follows the success of XPS’ inaugural run-on discussion forum in December 2025 formed of senior decision-makers from 25 large DB pension schemes with over £100bn of assets under management, which provided a valuable feedback loop to The Pensions Regulator. 

Tom Froggett, Partner and Head of DB Run-On at XPS, commented: “The Pension Schemes Act marks an important step towards a new DB surplus regime. 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.

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. 

Ahead of today’s formal launch, we have already supported clients over the past year in designing and implementing run-on strategies using this approach. This includes smaller schemes where a streamlined approach has enabled them to run on efficiently, but also larger schemes looking to strengthen existing structures.

So far, we have worked with more than 10 schemes with combined assets of over £50bn, with feasibility studies underway for many more. We look forward to working with more trustees and employers in the coming months to help them deliver the benefits of DB run-on to their members and employers.”   

To find out more about what XPS Integrated Run-On could offer your scheme, speak to Tom Froggett or to your usual XPS Group contact.