STORY
The Government has launched a consultation on reforms intended to make it easier for defined benefit pension schemes to release surplus funds. Ministers said the changes could unlock billions of pounds while maintaining protections for members.
The Department for Work and Pensions said the proposals build on the Pension Schemes Act 2026, which received royal assent in April. The Government argues that greater flexibility could support employers, strengthen the pensions market and encourage investment in the wider economy.
The proposals will now be tested with industry, trustees and member representatives. The political challenge for ministers will be to show that any greater use of surpluses can be balanced with the long-standing need to protect pension promises.